AmeriCredit, the subprime lending subsidiary of General Motors Financial, has lined up a $1.1 billion securitization backed by subprime loans.
JP Morgan, Morgan Stanley, RBC Capital Markets and Wells Fargo Securties are the lead undewriters.
DBRS and Moody’s Investors Service have assigned preliminary ratings to the deal, AMCAR 2015-1. The trust will offer $627 million of triple-A rated notes over three tranches with varying maturty dates. The class A2 notes, split into floating-rate and fixed-rate notes, are due April 2018, and the class A3 notes are due November 2018. The notes are structired with credit enhancement at 34.7%.
Also on offer are $84 million of double-A rated class B notes, $104 million of single-A rated class C notes, BBB’/ Baa2’ rated class D notes and BB’/ Ba2’ rated class E notes.
This transaction is backed by a pool of loans with higher credit quality than some recent transactions. The borrowers have a weighted average AmeriCredit score of 245, compared with around 240 fore deals completed in late 2013 and early 2014.
The loans backing the deal have a weighted average original term of 71 months and only one month of seasoning.