Prestige Completes $222 Million Portfolio Securitization
Prestige Financial Services Inc. has completed its eighth rated term securitization, issuing $221.6 million in notes backed by $225.6 million in subprime automobile installment receivables.
Prestige Financial Services Inc. has completed its eight rated term securitization, issuing $221.6 million in notes backed by $225.6 million in subprime automobile installment receivables.
Underwritten by J.P. Morgan Securities, the notes were purchased by qualified institutional buyers and accredited investors in a private offering. The transaction closed on March 28.
The six note classes carried ratings ranging from “A-1+”/”R-1h” through “BBB”/”BBB” from both Standard & Poor’s and DBRS, respectively. The weighted average note yield was 2.74 percent.
"This transaction marks Prestige's first natural triple “A” rated ABS issuance," said John Cho, managing director at J.P. Morgan Securities. "It also enjoyed the company's broadest investor base participation to date. We see both as confirmations of the market's continued confidence in the Prestige name."
Founded in 1994 as an affiliate of the Larry H. Miller Group, Prestige manages a portfolio of over $400 million and does business with more than 500 dealerships in 21 states.
“A strong showing by both new and repeat investors allowed us to achieve our best-ever pricing on a term securitization," said Bryant Henrie, Prestige’s COO. “Our marching orders are to pursue controlled growth while seeking and servicing the type of customer who has proven to be the most successful for us, and this transaction will facilitate that growth.”
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