CARY, N.C. -

Three finance companies — Prestige Financial Services, Credit Acceptance Corp. and Consumer Portfolio Services — all shared investment news this week.

The largest of the three developments came from Prestige Financial Services, which completed its 13th and largest rated term securitization, issuing $400 million in securities backed by $414,507,771 in automobile installment receivables.

In a transaction led jointly by Wells Fargo Securities and J.P. Morgan Securities, notes were purchased by qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act. The securitization closed on Thursday.

 The company said the seven note classes issued by Prestige Auto Receivables Trust 2015-1 carried ratings ranging from A-1+/R-1(h) through BB/BB from Standard & Poor’s and DBRS, respectively, based on several factors including Prestige’s proven track record as a loan originator and servicer. The weighted average rate was 2.08 percent.

“PART 2015-1 represents yet another successful transaction from Prestige, as evidenced by robust investor participation and attractive pricing levels in a crowded market,” said Leah Miller, managing director at Wells Fargo Securities.

Prestige, based in Salt Lake City, manages a loan portfolio of nearly $900 million and does business with more than 2,000 dealerships in 46 states.

Prestige was founded in 1994 as an affiliate of the Larry H. Miller Group of Companies, which includes the NBA’s Utah Jazz and one of the country’s largest auto dealership networks.

“The strong investor backing we enjoyed on this deal reflects an appreciation of our basic objective to help customers improve their credit and their lives by financing top-quality vehicles,” Prestige president Bryant Henrie said. “It’s worked for more than two decades, and continued support from our investors and bankers will facilitate these efforts for many years to come.”

Henrie added all notes included in this transaction having been sold, this announcement of their sale appears as a matter of record only.

Credit Acceptance Announces Pricing of $250 Million Senior Notes Offering

Credit Acceptance announced this week it priced $250 million of its 7.375 percent senior notes due 2023 in its previously-announced offering.

The Southfield, Mich., company indicated the issue price is 99.266 percent of the principal amount of the notes. The closing of the sale of the notes is expected to occur on or about Monday, subject to customary closing conditions.

“We intend to use the net proceeds from the offering of the notes for general corporate purposes, which may include repayment of outstanding borrowings, if any, under our revolving credit facility,” company officials said.

“The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended,” they continued. “This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Credit Acceptance mentioned the notes will not be registered under the Securities Act and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration requirements.

CPS Outlines $245.0 Million Senior Subordinate Asset-Backed Securitization

Also arriving this week, Consumer Portfolio Services, announced the closing of its first term securitization in 2015. The transaction is CPS’ 16th senior subordinate securitization since the beginning of 2011 and the fourth consecutive securitization to receive a triple-A rating on the senior class of notes.

In the transaction, CPS highlighted qualified institutional buyers purchased $245 million of asset-backed notes secured by automobile receivables purchased by CPS. The sold notes, issued by CPS Auto Receivables Trust 2015-A, consist of five classes. Ratings of the notes were provided by Moody's and DBRS and were based on the structure of the transaction, the historical performance of similar receivables and CPS's experience as a servicer.

Note Class  Amount Interest
Rate
Average
Life
Price Moody's
Rating
DBRS
Rating
 A  $163.5 million  1.53%  1.19 years  99.99639%  Aa2  AAA
 B  $36.8 million   2.79%  2.95 years  99.99243%  Aa3  A
   $25.7 million  4.00%  3.69 years  99.97818%  Baa2  BBB
 D  $11.0 million  5.60%  4.06 years  99.97103%  Ba3  BB
 E  $8.0  million  6.19%  4.06 years  99.98766%  B2  B

The weighted average effective coupon on the notes is approximately 3.01 percent.

Officials indicated the 2015-A transaction has initial credit enhancement consisting of a cash deposit equal to 1.00 percent of the original receivable pool balance. The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 4.00 percent of the then-outstanding receivable pool balance.

The company went on to mention the transaction utilizes a pre-funding structure, in which CPS sold approximately $173.0 million of receivables today and plans to sell approximately $72.0 million of additional receivables during April.

“This further sale is intended to provide CPS with long-term financing for receivables purchased primarily in the month of March,” officials said.

“The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law,” they continued. “All of such securities having been sold, this announcement of their sale appears as a matter of record only.”