AmeriCredit Financial Services is coming out with its first securitization of subprime auto loans of 2014 — a $750 million deal with a number of tranches, according to a presale report by Standard & Poor’s.
AmeriCredit is a unit of General Motors Financial Co.
There are three senior classes in Automobile Receivables-Backed Notes Series 2014-1. One, rated A-1+,’ consists of short-term notes for a total $97 million. The other two — for $233.7 million and $202 million — are longer-term and rated triple-A.
There are a large group of arrangers selling the deal: Barclays Capital, Citigroup Global Markets, Credit Suisse Securities (USA), Morgan Stanley & Co., Merrill Lynch, Pierce, Fenner & Smith, J.P. Morgan Securities, RBS Securities, and Wells Fargo Securities.
The senior notes all enjoy a credit enhancement of 42.5%.
General Motors has been securitizing its portfolios since 1994. S&P said that the company tightened its underwriting standards in 2008, leading to a drop in weighted-average loan-to-value ratios. This has improved the performance of its securitizations issued in 2009-2011 versus those floated 2006-2008.
Apart from the A tranches, the deal has a $57.4 million B piece rated AA+ (sf)’, a $71.2 million C tranche rated A+ (sf)’, a $70.05 million D piece rated BBB+ (sf), and an $18.6 million E piece rated BB+ (sf).’
