This week, Westlake Financial Services finalized another securitization above $1 billion, setting a new company record in the process.
Westlake announced the closing of its 19th asset-backed securitization (WLAKE 19-2) at $1.2 billion. This latest securitization is the largest ever in Westlake history and the fifth consecutive issuance of more than $1 billion.
“Our largest ever ABS is an indication of our company’s continued growth and increasing market share,” Westlake Financial Services chief financial officer Paul Kerwin said in a news release.
“We expect this growth to continue and plan for another large ABS before the end of the year,” Kerwin continued. “I would like to thank our capital markets and treasury team for executing another successful deal.”
During this securitization, Westlake acknowledged market trade tensions caused a rally in treasuries, leading Libor rates to plummet 0.65% compared to Westlake’s February deal. Despite these factors Westlake pointed out that the company was able to secure investor confidence, with returning investors accounting for 33 of the transaction’s 36 total participants.
“Despite the market pitfalls, Westlake was able to close the ABS with a strong outlook for our investors,” said Franka Bicolli, director of treasury of Westlake Financial Services.
“We added three new investors to our large pool of consistent participants. We also increased our spread concession by 0.08%, placing the overall rate 0.58% lower than our February transaction,” Bicolli continued.
Westlake Financial Services continues to experience growth through its nationwide dealer network. As one of the largest privately held automotive lenders, the company is active in all 50 states plus Puerto Rico, with a dealer base of more than 20,000 franchise and independent dealerships.
Westlake’s current portfolio of $8.3 billion includes originated auto loans and leases, direct-to-consumer loans, portfolio purchases and servicing and dealer floorplan lines of credit.