Bridgecrest Acceptance is preparing to issue at least $485.9 million in asset-backed bonds, funded from a pool of auto loans extended to borrowers considered non-prime borrowers.
The transaction could increase the securitized amount to $591.4 million. This is the second public securitization for the Bridgecrest Lending Auto Securitization Trust, according to Asset Securitization Report's deal database, but Kroll Bond Rating Agency notes that DriveTime Automotive Group originated the underlying auto loans. BLAST 2024-1 will issue only fixed-rate notes, according to ratings analysts from S&P Global Ratings.
BLAST 2024-1 will issue five classes of notes through a structure of seven tranches, according to KBRA. The collateralized pool amounts to $575 million in loans—and could be upsized to $700 million. Based on the $575 million pool amount, with a weighted average (WA) loan balance of $23,201, almost entirely used vehicles.
The A-1 notes attained A1+ and K1+ ratings from S&P and KBRA, respectively. Both rating agencies assigned AAA to the A2 and A3 notes; AA to the class B notes; A to the class C notes; BBB to the class D notes and BB to the class E notes, they said. The notes have legal final maturity dates that range from Jan. 15, 2025 on the A1 tranche through Oct. 15, 2030 on the E tranche.
KBRA says that BLAST 2024-1 collateral pool exhibits a few key differences from BLAST 2023-1, such as a higher WA interest rate, at 23.4%, compared with 22.5%. Its non-zero weighted average FICO score was 554, compared with 556, according the rating agency. Also, the collateral has a higher distribution of grade A+ and A borrowers; and an even more concentrated distribution of grade B borrowers, at 43.4% compared with 40.4%, on the BLAST 2023-1.
Overcollateralization, excess spread, subordination and a reserve account funded at closing provide credit support to the notes, according to KBRA.
Before DriveTime brought this second securitization forward, KBRA highlighted some volatility in the corporate operations. Net income was $4.1 million, down 95% on Sept. 30, 2023 compared with the first nine months ended Sept. 30, 2023, ratings analysts said. Revenue $2.46 billion, however, up 16% from the first nine months of 2022. Since Q1 2021, portfolio delinquencies have been trending higher, generally, even with peaks and dips.
