Westlake Financial Services and Prestige Financial Services each announced updates about securitizations this week, combining for a total surpassing $1.1 billion.
The larger of the two securitizations came from Westlake, which actually rolled out its largest issuance in company history.
Westlake issued an $800 million asset-backed securitization (WLAKE 2017-2) backed by approximately $860 million of automotive paper.
The transaction was led by Wells Fargo Securities (structurer), Credit Suisse and SMBC Nikko. It is the latest of Westlake’s 14 securitizations, which have been comprised of approximately $5.86 billion in cumulative note sales.
“This ABS trumps the most recent securitization completed back in March, which was at the time, our largest ABS ever issued of $700 million,” Westlake chief financial officer Paul Kerwin said. “Our credit performance remains strong in spite of competitive and economic pressures, which attracts investors to our portfolio and enables us to continually increase our securitization amount.”
The company indicated Westlake’s largest-ever securitization has an expected annualized cost of 2.65 percent including the initial purchaser’s fees, which is in-line with prior ABS deals, despite higher benchmark interest rates.
“Westlake’s ABS continue to perform and investors keep supporting our portfolio,” Westlake associate vice president of finance Sean Morgan. “We increased our deal by $100 million with 37 investors on WLAKE 2017-2, which is a reflection of continuous investor demand for Westlake’s ABS.”
Westlake pointed out that it maintains six borrowing facilities funded by 10 banks with combined capacity of $1.48 billion to support continued growth in its full-spectrum financing platform.
Westlake also highlighted that it continues to experience increased growth through its nationwide network of dealers. The company is active in all 50 states, including Puerto Rico, with a dealer base of more than 25,000 franchise and independent dealerships.
Westlake’s current portfolio of $4.01 billion includes originated auto loans, portfolio purchases and dealer flooring lines.
Meanwhile over at Prestige Financial Services, the announced it has completed its 16th rated term securitization, issuing $335,223,000 in securities backed by $358,533,598 in automobile installment receivables.
In a transaction led jointly by J.P. Morgan Securities and Wells Fargo Securities, Prestige indicated that notes were purchased by qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act. The securitization closed on Wednesday.
Officials highlighted the seven note classes issued by Prestige Auto Receivables Trust 2017-1 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 track record as a loan originator and servicer. The duration-weighted average rate was 2.76 percent.
“Prestige has been an active participant in the asset-backed term market for two decades, with nearly $4 billion in total issuance,” J.P. Morgan Securities executive director Billy Wong said. “PART 2017-1 is yet another demonstration of the company’s ability to access liquidity on relatively favorable terms.”
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 dealership networks. Today, Prestige manages a portfolio of more than $1 billion in contracts and does business with dealerships across the country.
“Our securitizations have continued to enjoy the support of both new and repeat investors,” Prestige chief financial officer Aaron Dalton said. “Thanks to them, this transaction delivered some of our tightest pricing spreads ever.”
Prestige added that all notes included in this transaction having been sold, and this announcement appears as a matter of record only.