SALT LAKE CITY — Subprime lender Prestige Financial Services Inc. has announced that a line of credit it established with Wells Fargo Preferred Capital earlier this year has more than doubled its funding capacity. In a single transaction, Bank of America Business Capital joined the facility and Wells Fargo increased its initial commitment by 20 percent.
Wells Fargo will serve as lead agent for the senior secured revolving facility and Bank of America Business Capital will act as documentation agent. The line of credit is structured to allow additional lenders to participate in syndication, to a maximum principal amount of $300 million.
"Prestige is a profitable and well-managed company seeking additional liquidity to support its business activities," said John Mostofi, Bank of America Business Capital’s West Division Executive. "We’re pleased to be able to build on the existing relationship between Bank of America and Prestige’s parent, the Larry H. Miller Group."
Prestige manages $575 million of subprime automobile loans and is a leader in the open bankruptcy segment. The firm was founded 15 years ago as the in-house subprime finance company of the Larry H. Miller Group, the nation's tenth-largest retailer, and currently works with dealerships within and outside of its parent company in 13 states.
"We value the long-term relationship between Bank of America and the Miller Group," said Bryant Henrie, Prestige’s recently appointed COO. "This new commitment to Prestige represents a high level of mutual respect as well as a shared commitment to future success."
Readers will find an exclusive Q&A with Scot Seagrave, Prestige's senior vice president of loan originations, in the June 2009 print edition of Special Finance.