AmeriCredit Financial Services, a unit of General Motors, is marketing $1 billion of bonds backed by subprime auto loan receivables, according to Standard & Poor’s.
AmeriCredit Automobile Receivables Trust 2014-4 will issue seven tranches of notes, including a $182 million money market tranche and two tranches with preliminary AAA’ ratings from S&P: $332 million maturing in April 2018, $198 million maturing in July 2019.
RBS Securities, Barclays Capital, Citigroup Global Markets, RBC Capital Markets, Credit Suisse Securities, Deutsche Bank Securities, and J.P. Morgan Securities are the underwriters.
There are a number of changes in the collateral and credit enhancement compared with Americredit’s previous transaction from the same program, according to S&P. Excess spread has decreased to 7.76% from 7.94%; the percentage of new cars backing the bonds fell to 48% from just over 50%; and the percentage of longer term loans, those with terms of 61-72 months, decreased to 89.9% from 90.5%.