Flagship Credit Acceptance, the subprime auto lender controlled by Perella Weinberg Partners, is in the market with a $450 million securitization, according to Standard & Poor’s.

Flagship Credit Auto Trust 2015-3 is the second deal since Flagship’s lending platform was merged with that of CarFinance, another lender controlled by Perella Weinberg

Deutsche Bank Securities is the lead underwriter.

S&P expects to assign an ‘AA’ rating to a $335.79 million tranche of senior notes with a final maturity of October 2020; an ‘A’ rating to $44.54 million of notes due March 2022; a ‘BBB’ rating to $40.43 million of notes that are also due March 2022; and a ‘BB-‘ rating to $29.24 million of notes due November 2022.

In its presale report, the rating agency noted several change in the composition of the collateral of this deal compared with Flagship’s previous securitization. The percentage of loans to military personnel decreased to less than 2.25% from 3.85%, while the percentage of direct loans increased, to 22.05% of the pool from 17.43%.

The weighted average loan-to-value ratio also increased, to 119.37% from 117.28%.

The percentage of loans secured by new vehicles decreased to 22.92% from 24.29%.

The percentage of loans with long terms off between 60 and 72 months decreased to 85.77% from 87.88%, while loans with very long term of 73-78 months increased, to 2.22% from 1.14%.  Overall loans with terms of 60 plus months decreased to 87.99% in this pool versus 89.02% in the previous deal.

The weighted average seasoning decreased to 1.24 months from 2.13 months.

Flagship has filed plans with the Securities and Exchange Commission for an initial public offering of common stock; the filing is not yet effective. In its presale report, S&P said it is unclear at this point how the company's strategy and focus would change if it were to become a publicly traded.

Flagship Credit Auto Trust 2015-3 is the second deal since Flagship’s lending platform was merged with that of CarFinance, another lender controlled by Perella Weinberg

Deutsche Bank Securities is the lead underwriter.

S&P expects to assign an ‘AA’ rating to a $335.79 million tranche of senior notes with a final maturity of October 2020; an ‘A’ rating to $44.54 million of notes due March 2022; a ‘BBB’ rating to $40.43 million of notes that are also due March 2022; and a ‘BB-‘ rating to $29.24 million of notes due November 2022.

In its presale report, the rating agency noted several change in the composition of the collateral of this deal compared with Flagship’s previous securitization. The percentage of loans to military personnel decreased to less than 2.25% from 3.85%, while the percentage of direct loans increased, to 22.05% of the pool from 17.43%.

The weighted average loan-to-value ratio also increased, to 119.37% from 117.28%.

The percentage of loans secured by new vehicles decreased to 22.92% from 24.29%.

The percentage of loans with long terms off between 60 and 72 months decreased to 85.77% from 87.88%, while loans with very long term of 73-78 months increased, to 2.22% from 1.14%.  Overall loans with terms of 60 plus months decreased to 87.99% in this pool versus 89.02% in the previous deal.

The weighted average seasoning decreased to 1.24 months from 2.13 months.

Flagship has filed plans with the Securities and Exchange Commission for an initial public offering of common stock; the filing is not yet effective. In its presale report, S&P said it is unclear at this point how the company's strategy and focus would change if it were to become a publicly traded.

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