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CarFinance Capital Completes $238 Million Asset-Backed Securitization

CarFinance Capital completes $238 million asset-backed securitization at the end of May. The transaction comes two months after the finance company renewed and increased its warehouse credit facility to $300 million.

by Staff
June 6, 2013
1 min to read


IRVINE, Calif. — CarFinance Capital LLC, a below-prime auto finance company, completed its first asset-backed securitization, issuing $238 million in notes in a transaction that closed on May 30. The offered notes were assigned ratings by Moody’s Investor Services Inc. and Kroll Bond Rating Agency Inc. of A3/AA and Ba3/BB, respectively. Credit Suisse and Deutsche Bank Securities were joint book-runners for the transaction.

The transaction comes after CarFinance Capital announced in March that it had renewed and increased its warehouse credit facility to $300 million. The increased credit line was also provided by Credit Suisse and Deutsche Bank Securities.

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“Today, credit-challenged consumers account for over 43 percent of auto loans. These are consumers who need cars to get to work and to take their kids to school, and our mission is to help them get financed,” said Jim Landy, CarFinance Capital’s founder, president and CEO. “We are very pleased with the overwhelming and broad interest in our first rated securitization, which we believe reflects the strength of our business, management team, asset quality, and capital position.

“This is another significant step in helping us fulfill our mission as we continue to expand our business across the United States.”

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