Prestige Executes $350 Million Portfolio Securitization
Prestige completed its eleventh and largest rated term securitization, issuing $350 million in securities backed by more than $353 million automobile installment receivables.
SALT LAKE CITY — Last month, Prestige Financial Services Inc. completed its eleventh and largest rated term securitization, issuing $350 million in securities backed by more than $353 million in automobile installment receivables. The transaction was led jointly by Wells Fargo Securities and J.P. Morgan Securities, and notes were purchased by qualified institutional buyers and accredited investors in a private offering. The securitization closed last month.
The six note classes carried ratings ranging from A-1+/R-1(h) through BBB/BBB(h) from Standard & Poor’s and DBRS, respectively, based on several factors including Prestige’s proven track record as a loan originator and servicer. The weighted average note coupon was 1.55 percent, the lowest pricing the company has achieved on a securitization to date.
“In a market with significant competitive supply, Prestige built a large order book with substantial investor diversity that bodes well for continued issuance success,” said Chris Pink, Managing Director at Wells Fargo Securities.
Prestige was founded in 1994 as an affiliate of the Larry H. Miller Group of Companies, which includes the N.B.A.’s Utah Jazz and the country’s tenth-largest dealership network. Today, Prestige manages a loan portfolio of nearly $600 million and does business with approximately 1,200 dealerships in 41 states.
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