Three subprime auto deals totalling $1.4 billion have joined the pipeline this week.
The largest, at $975.1 million, comes from General Motors Financial Services, its third deal of the year. DriveTime Automotive Group is also marketing $236.99 million of subprime auto securities, its inaugural 2013 deal. And First Investors is prepping a $200 milllion deal, its second of the year.
All three join a $185 million subprime auto deal launched by Consumer Portfolio Services late last week.
GM's deal, AmeriCredit Automobile Receivables Trust 2013-3, has been assigned preliminary ratings by Fitch Ratings. The transaction has initial credit enhancement levels ranging from 64.25% for the Class A notes, to 22.50% for the Class D notes.. It will issue three class A tranches, the first rated F1 and next two rated ‘AAA’; class B notes rated ‘AA’; class C notes rated ‘A’; class D notes rated ‘BBB’ and class E notes rated ‘BB’.
Barclays, Credit Suisse, Deutsche Bank, and Morgan Stanley have been named joint book runners on the deal. BNP PARIBAS, J.P. Morgan and Bank of America Merrill Lynch are joint lead managers on the class A notes.
The 2013-3 pool is backed by new and used automobile, light-truck and utility vehicle loans originated and serviced by AmeriCredit Financial Services.
This latest deal has marginally weaker credit quality than GM recent transactions, with a 562 weighted average FICO score, a 239 wieghted average internal credit score and 91.1% 60-plus-month loan terms (extended term loans).
First Investors' transaction is rated by Kroll Bond Ratings; it has initial credit enhancement levels ranging from 19.50% for the 'AAA'-rated Class A notes to 1.50% for the 'BBB'-rated Class D notes; these levels build to 22.00% and 4.00% for the Class A and Class D notes, respectively, over time.
First Investors targets customers with FICO scores between 500 and 625. It focuses on customers that have historically handled credit responsibly but have been adversely impacted by a “life event” such as a job loss, a divorce, or an uninsured medical problem. Approximately 50% of First Investors’ customers have previously filed for personal bankruptcy
DriveTime's transaction is also rated by Kroll. It has initial credit enhancement levels ranging from 64.25% for the 'AAA'-raetd Class A notes to 22.50% for the 'BBB'-rated Class D notes.
DriveTime focuses on somewhat lower quality subprime obligors with an average FICO score ranging typically between 475 and 550. In addition, approximately 15.4% of the loans in DTAOT 2013-1 have no FICO score.