American Credit Acceptance (ACA) is readying its third subprime auto loan securitization of the year, according to a presale report by Standard & Poor’s.
The deal, American Credit Acceptance Receivables Trust 2014-3, has a three-month prefunding period that ends November 10, 2014. On this date, the issuer will deposit approximately $44 million of the proceeds from the sale of the notes into the prefunding account.
The loans in the collateral pool have a weighted average FICO score of 539 and 51.16% of the loans have an original term of 61-72 months.
S&P expects to rate the $117.9 million in three-year A notes AA.’ Some $37.7 million in B notes were assigned provisional A’ ratings, while the $30.2 million class C notes were rated BBB’—both classes maturing in June 2020. Class C notes for $14.2 million were preliminarily rated BB’ and mature in November 2021.
The underwriters are Wells Fargo and Deutsche Bank.
ACA’s latest issuance was in April. Totaling $259.17 million, ACART 2014-2 was also backed by subprime auto loans. S&P rated the $149.29 million in A notes AA.’
ACART 2014-3 is ACA’s ninth asset-backed transaction. The subprime auto finance company, headquartered in Spartanburg, S.C., was established in 2007. Based on the company’s unaudited financial statements, it had $1.3 billion in assets and $122 million in equity as of May 31, 2014.