Prestige Financial Services is readying its first subprime auto securitization of 2014, according to pre-sale report from Standard & Poor’s.  

The $390-million deal is being arranged by JP Morgan Securities and Wells Fargo Securities.

The transaction has multiple tranches. The largest is an A-2 piece worth a total $195 million and rated ‘AAA (sf)’ by S&P. A short-term A-1 tranche for $47 million is rated ‘A-1+ (sf).’ An A-3 class for $69.5 million is rated triple-A; a B tranche for $24.6 million is double-A; a C piece for $29.9 million is rated single-A; and D notes for a total of nearly $24 million are rated triple-B.

The class A notes have in the aggregate 36.8% credit support.

Compared to Prestige’s 2013-1 deal, the share of Chapter 7 and Chapter 13 bankruptcy collateral rose to 41.6% from 38.1%. Perhaps counterintuitive, a higher share is actually a credit positive from S&P perspective.    

Prestige has a history in the securitization sector dating back to 2001. From 2001 to 2006 the firm originated six asset-backeds, all of which have paid off, according to S&P. It now has five outstanding deals.

Prestige serviced a portfolio of around $729 million at the end of 2013, a 34% leap from a year earlier.

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