American Credit Acceptance is planning to sell a subprime auto ABS called American Credit Acceptance Receivables Trust Series 2012-1. The 144A securitization rated by Standard & Poor's is worth $150 million.
Bloomberg reported that Wells Fargo is the sole lead on the transaction, which might price this week.
In a presale report from the agency, S&P noted the significant credit enhancement and collateral composition changes from the American Credit 2011-1 offering.
A few of these changes include initial overcollateralization rising to 8.50% of the initial pool balance from 7.00%; target overcollateralization rose to 13.50% of the current pool balance from 11.50%; the overcollateralization floor has gone up to 1.00% of the initial pool balance from 0.50%; the weighted average loan seasoning dropped to 3.96 months from 7.80 months; and the pool's weighted average LTV ratio rose to roughly 134.53 from 129.1, among other things.
Other auto deals in the market this week are Ally Bank, Honda Motor Co. and Nissan Motor Acceptance Corp.