Tricolor executes second securitization so far this year
										Image courtesy of GoodCar.
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Tricolor is continuing to leverage securitizations to have the resources it needs to specialize in the Hispanic and other underserved markets and operate 65 retail centers within 22 cities in Texas, California, Nevada, Arizona, New Mexico, and Illinois.
This week, Tricolor announced a $217 million issuance, as Barclays acted as the lead structuring agent with JPMorgan serving as joint bookrunner and Fifth Third Securities as co-manager.
The Class A, Class B, Class C, Class D, Class E and Class F were rated by S&P and Kroll Bond Rating Agency and were placed with a diversified mix of institutional investors in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended.
According to a news release, Tricolor has now completed 17 ABS transactions and is the only issuer of subprime auto ABS to be certified by the U.S. Treasury as a Community Development Financial Institution (CDFI). The company issued its first securitization in July 2013.
“We’re excited to complete our second securitization of the year,” Tricolor founder and CEO Daniel Chu said. “Volatility has become the norm in the overall macro-economic environment, and we have conviction that our differentiated approach enables us to deliver consistent, predictable and positive outcomes.
“We’re also pleased to close our inaugural transaction with S&P as a rating agency as we continue to build a robust capital markets platform,” Chu added.
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