Prestige Financial Services (PFS) is in the market with Prestige Auto Receivables Trust 2011-1 (PART 2011-1), a six-tranche subprime auto loan receivables managed by JPMorgan Securities. The deal is worth $221.62 million.
This is Prestige's first securitization in 2011 and its first since the firm's Series 2009-1 deal that closed in December 2009, Standard & Poor's said in a presale report. Its last transaction was the first to use a senior/subordinate credit enhancement structure, S&P reported.
According to presale report from DBRS, this pool comprises receivables from two previously securitized pools, Series 2006-1 and 2006-A (conduit funded) and receivables from new originations. The receivables securitized in PART 2011-1 will be subprime motor vehicle retail installment sales contracts backed by new and used automobiles, vans and light-duty trucks.
Series 2006-1 makes up 5.86% of the aggregate receivables balance and 2006-A (conduit funded) accounts for 33.96% of the aggregate receivables balance. Each of the receivables from the two securitized pools has a considerable amount of seasoning DBRS.
This is the twelfth transaction PFS has issued in the ABS term or conduit market since 1996. All of the deals issued between 2001 to 2007 featured a monoline wrap, DBRS said. The 2009-1 offer was a senior-subordinate structure. All of the deals, aside from the 2007-1 and 2009-1 term securitizations and two conduit securitizations, have paid off in full without experiencing an event of default.
This transaction is being structured with a short pre-funding period of three months. The capital structure has four classes of notes: Class A (divided into three sequential tranches – Class A-1, A-2 and A-3), Class B, Class C and Class D notes, the DBRS presale indicated.