GM Financial Prices $800 Million in Securities
FORT WORTH, Texas — To raise more capital to generate more auto loans, GM Financial announced Wednesday the pricing of an $800 million offering of auto asset-backed securities.
The securities were priced through lead managers Barclays Capital, Credit Suisse and Wells Fargo Securities.
Co-managers include Deutsche Bank Securities, J.P. Morgan and RBS.
"GM Financial uses net proceeds from securitization transactions for long-term financing of its receivables," officials highlighted.
The securities will be issued via an owner trust called AmeriCredit Automobile Receivables Trust 2011-1, in seven classes of notes:
Note Class: A-1
Amount: $138 million
Average Life: 0.20 years
Price: 100.00000
Interest Rate: 0.32163 percent
Standard & Poors: A-1+ (sf)
Moody's: Prime-A (sf)
Note Class: A-2
Amount: $225 million
Average Life: 0.95 years
Price: 99.99573
Interest Rate: 0.84 percent
S&P: AAA (sf)
Moody's: Aaa (sf)
Note Class: A-3
Amount: $174 million
Average Life: 2.16 years
Price: 99.98741
Interest Rate: 1.39 percent
S&P: AAA (sf)
Moody's: Aaa (sf)
Note Class: B
Amount: $61.544 million
Average Life: 2.96 years
Price: 99.97737
Interest Rate: 2.19 percent
S&P: AA (sf)
Moody's: Aa1 (sf)
Note Class: C
Amount: $76.393 million
Average Life: 3.52 years
Price: 99.97351
Interest Rate: 2.85 percent
S&P: A (sf)
Moody's: Aa3 (sf)
Note Class: D
Amount: $75.119 million
Average Life: 4 years
Price: 99.97843
Interest Rate: 4.26 percent
S&P: BBB (sf)
Moody's: Baa2 (sf)
Note Class: E
Amount: $19.944 million
Average Life: 4 years
Price: 99.99476
Interest Rate: 6.23 percent
S&P: BB (sf)
Moody's: Ba2 (sf)
The weighted average coupon on the notes to be paid by GM Financial is 2.5 percent.
The 2011-1 transaction will have an initial credit enhancement of 7.75 percent, consisting of 2.00 percent cash deposit and 5.75 percent overcollateralization. Total required enhancement will build to 14.75 percent of the then-outstanding receivable pool balance, which includes the initial 2.00 percent cash deposit, officials said.
Copies of the prospectus relating to the public offering of receivables-backed securities can be obtained from the lead managers and co-managers.
The Class E notes have been privately offered via a private placement memorandum.