As other asset-backed securities issuers look to get the balance of their 1999 deals out of the way during the third quarter, auto lender Union Acceptance Corp. will likely follow up last month's deal with a $350 million auto-backed issuance in the fourth quarter, a company official said.
"We'll either try to do something in December or maybe even skip a quarter," said the source. "Though sometimes when people say it's gonna be bad, it turns out good. We're looking at all our options. I think everyone is trying to guess what the market is going to do."
Union Acceptance Funding Corp., a subsidiary of UAC, renewed its credit facility with Bank of America last week, raising its borrowing potential to $500 million through its conduit, Enterprise Funding Corp.
The source explained that as an alternative to issuing an asset-backed deal, UAC might continue selling receivables into the credit facility.
"It's a way for us to fund our loans prior to securitization," he said. "And we could sell receivables into this facility in lieu of securitization."
UAC has been a regular auto-backed issuer since 1995, pricing deals quarterly. UAC last came in August with a $364 million MBIA-wrapped deal, structured in five parts. The average lives ranged from 5.5 years to just over seven years. Bear, Stearns & Co. was the lead manager.