Fast-growing credit card issuer CompuCredit will enter the term market early next year and expects to offer securitizations on a quarterly basis after its debut, said David Hanna, chief executive officer at the company.
After entering the business two years ago, CompuCredit has increased its credit card base rapidly, adding between 20,000 and 25,000 new accounts per week. Hanna said those accounts have generally matured over a 10-month period to an average balance of $1,000 each.
Thus far CompuCredit has securitized through a commercial-paper facility run by Banc of America, Barclays Capital, First Union Capital Markets and SunTrust. That program currently stands at $900 million after the company placed an additional $275 million of card collateral in the conduit a few weeks back.
Hanna said the company would probably maintain the CP facility, but securitize out of it on a quarterly basis into the term market. CompuCredit issues "Aspire" Visa cards to its customers, who Hanna describes as an underserved group between the prime and the secured card market.
"We've been pretty successful adding customers that are creditworthy people that have fallen through the cracks," Hanna said.
Hanna said it was likely that the companies who manage CompuCredit's CP facility would play a management role in its term securitization program as well.