HOUSTON — First Investors Financial Services announced late
last week that it has completed the issuance of $187 million in term
asset-backed notes in a private placement transaction.

The notes were issued by a wholly-owned subsidiary of the company
through the First Investors Auto Owner Trust 2013-1.

Officials explained the notes consist of five sequential pay
classes that carry a weighted average coupon rate at issuance of 1.03 percent.
Initial credit enhancement consists of a cash reserve account equal to 1.5
percent of the outstanding principal balance of the initial receivables pool
and an initial overcollateralization of 0 percent, which will increase to a
target of 2.5 percent through cash collections.

The issuance represented the company's fifth term
securitization since January 2011.

Officials indicated proceeds from the issuance were used to
reduce the amount of borrowings outstanding under the company's warehouse
credit facility in order to allow room for growth in the company's portfolio of
receivables held for investment.

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