GM Financial, formerly known as AmeriCredit, prepped a $975.2M subprime auto loan securitization deal, bringing year to date total auto related issuance to $5.0bn.
The deal, AmeriCredit Automobile Receivables Trust 2013-1 has been assigned preliminary ratings by DBRS and Standard & Poor’s. It will issue three class A tranches rated ‘AAA’; class B notes rated ‘AA’; class C notes rated ‘A’; class D notes rated ‘BBB’ and class E notes rated ‘BB’.
Deutsche Bank, Goldman Sachs, RBC Capital Markets and RBS have been named joint bookrunners on the deal. Citigroup and Credit Suisse are joint lead managers on the class A notes.
Americredit, a large issuer of subprime auto loans, joins the growing January pipeline auto securitizations backed by these loans. Ally Financial plans a $790mn non-prime auto ABS transaction and Santander priced its $1.25 billion securitization of subprime auto receivables on Wednesday.
Analysts at Edmunds.com expect an increase in auto loans to subprime borrowers in 2013, providing more collateral for auto ABS. Wells Fargo analysts said in their 2013 outlook that there is still room for further expansion in subprime lending, as long as the economy does not return to recession. Subprime auto ABS issuance reached $18 billion in 2012, up from $12.7 billion in 2011, according to Wells Fargo.