SALT LAKE CITY — Prestige Financial Services announced late last week it established an asset-backed commercial paper conduit facility through J.P. Morgan Chase Bank, N.A. in Chicago.

Executives indicated the facility totaled $150 million. They went on to note the new arrangement — which has a renewable one-year term — is meant to provide a substantial and committed source of liquidity to fund consumer automotive lending activities.

In some ways similar to a secured line of credit from a bank, Prestige explained a conduit facility can aggregate installment receivables, which, in turn, can back short-term commercial paper sold to institutional investors.

The company said this funding source can allow lenders to methodically build their portfolios toward the higher volumes required for asset-backed securitization, a longer-term arrangement through which large pools of receivables are financed in bulk through the capital markets.

Nevertheless, Prestige emphasized its announcement appears as a matter of record only, and does not constitute an offer to sell or a solicitation of an offer to buy any security.

Prestige chief operating officer Bryant Henrie elaborated about how important the facility is, pointing out the company now has been in operation for 17 years and manages a $440 million portfolio.

"The competitive structure and outstanding pricing we achieved on this transaction owe to several factors," Henrie stated.

"Foremost among them are the valued, long-standing relationship between J.P. Morgan and Prestige's parent, the Larry H. Miller Group of Companies, as well as our proven track record in originating and servicing subprime auto loans," he concluded.