Global Lending Services is preparing a $261.5 million securitization of its originated pool of retail installment auto loan contracts.
GLS Auto Select Receivables Issuer Trust, 2025-4's loan pool is of prime quality, the pool experienced marginally higher delinquencies as of June 30, 2025 compared to a year earlier, according to Moody's Ratings. Although the servicer, GLS, is considered less able to mitigate non-collateral risks on behalf of securitization bondholders, it is still experienced, with more than 35 ABS deals.
With a triple-A stress of 34.00%, Moody's Ratings set its net loss expectation on GSAR 2025-4 at 8.50%, based on GLS's managed portfolio performance, analysts said in a pre-sale report.
With a rule 144a structure, the deal will issue notes through about five tranches of class A, B, C and D notes, according to its capital structure.
Most of the deal's assets are in the A2 tranche, 64.09%, and has a legal final maturity date of Feb. 18, 2031, according to Moody's. The tranche has total initial hard credit enhancement of 25.5%, which include a reserve fund representing 1.00% of the outstanding notes.
Otherwise, the A1 notes have a maturity of Sept. 15, 2026; the B and C notes mature on Dec. 15, 2031 and the class D notes have a legal final maturity of Nov. 18, 2033.
Credit enhancement on the deal includes overcollateralization (3.25%), subordination and annualized excess spread (8.64%), plus a non-declining reserve account of 1.00%.
Most of the 8,312 contracts in the collateral pool (81%) are financing used vehicles, Moody's said. On a weighted average (WA) basis, the borrowers have a FICO score of 696, a LTV ratio of 122%, and an annual percentage rate (APR) of 14.8%, the rating agency said. On average, the loans have a balance of $27,790.
Deutsche Bank Securities, Citigroup Global Markets and J.P. Morgan Securities are the deal's lead underwriters, Moody's said.
The pool is geographically diversified, with Texas, California and Florida accounting for 17.4%, 14.4% and 9.4% of the pool, respectively.
Moody's assigns P1 to the A1 notes; Aaa to the A2 notes; Aa2 to the class B notes; and A2 to the class C notes.
