AmeriCredit is planning a $1.1 billion securitization of subprime auto loans, according to a presale report published today by Fitch Ratings.
Citigroup, Credit Suisse, JP Morgan, and Wells Fargo are the lead underwriters.
AmeriCredit Automobile Receivables Trust (AMCAR) 2013-2 is backed by new and used automobile, light-truck, and utility vehicle loans originated and serviced by AmeriCredit Financial Services Inc., a unit of General Motors Financial Co.
The deal includes a $214.7 million money market tranche and two tranches with a preliminary ‘AAA’ rating from Fitch: $382.8 million of notes due in November 2016 and $183.8 million of notes due December 2017.
There is also a $84.2 million, ‘AA’-rated tranche due in May 2018; a $104.5 million, ‘A’-rated tranche due march 2018; a $102.8 million ‘BBB’-rated tranche due May 2019 and a $27.3 million ‘BB’-rated tranche due October 2020.
Fitch said the credit quality of 2013-2 is consistent with transactions AmeriCredit brought to market earlier this year and last year. The weighted average FICO score is 566, and weighted average credit score calculated using AmeriCredit’s proprietary method is 240. Used cars total 56.7% of the pool and the weighted average loan-to-value ratio is 110%.
However the pool has a greater concentration of loans with longer terms. The weighted average original term is 71 months and loans with terms longer than 60 months comprise 89.93%, the highest Fitch has seen in a pool dating back to 2008. “Longer term loans typically have higher loss severity, as loan amortization trails vehicle depreciation, exposing the transaction to higher loss severity if the obligor defaults,” the agency noted in the report.
