Foursight Capital is marketing a $106.3 million securitization of prime, near-prime and subprime auto loan receivables.
Foursight Capital Automobile Trust 2015-1 is the issuer’s second-ever term securitization. DBRS assigned preliminary A’ ratings to $96.7 million of class A notes, due June 2019 and BBB’ ratings to $9.6 million of class B notes, due August 2020. The initial class A credit enhancement is 13.20%, 20 basis points more than in the FCART 2014-1 transaction.
Foursight finances recent-model low-mileage used vehicles and moderately priced new vehicles. Most of the transaction pool is comprised of loans that finance used vehicles (57.27%). The weighted-average (WA) annual percentage rate on the loans at origination was 10.36%.? The pool has a WA FICO score of 637, a WA remaining term of 70 months.
Foursight, which is owned by Leucadia National Corp., is a relatively new entrant but it was established by former management from Franklin Capital Corp. (FCC), an active issuer of term ABS from 1998 to 2008. The issuer’s auto loan origination platform was created by replicating the former FCC platform, according to DBRS.
As of March 31, 2015, Foursight had a serviced portfolio of approximately 8,903 automobile loan contracts with an aggregate outstanding balance of over $194 million.