WFS Financial Inc (Nasdaq:WFSI) announced Aug. 28 that it had sold contracts on a whole loan basis to WFS Receivables Corporation 2 ("WFSRC2"), a subsidiary of WFS' ultimate parent company, Westcorp, at a price of 103 percent. As a result, WFS Financial recorded a cash gain on sale, net of costs, of $18.8 million.
"This sale is designed to most efficiently utilize the additional capital raised at Westcorp through its follow-on offering completed last quarter," said Tom Wolfe, chief executive officer of WFS Financial.
WFSRC2 transferred its security interest in the contracts to the WFS Financial 2003-3 Owner Trust, which in turn issued $1.7 billion in automobile receivable asset-backed securities. The transaction will be accounted for as a secured financing at Westcorp.
The offering was lead managed by Credit Suisse First Boston and co-managed by Banc of America Securities LLC, Barclays Capital, Citigroup, and Deutsche Bank Securities.
About WFS Financial
WFS Financial and its affiliates bill themselves as the largest non-captive issuer of automobile asset-backed securities in the United States having issued over $33 billion of such securities in 60 transactions to date.
WFS is one of the nation's largest independent automobile finance companies. WFS specializes in originating, securitizing, and servicing new and pre-owned prime and non-prime credit quality automobile contracts through its nationwide relationships with automobile dealers.
Information about WFS Financial can be found at its Web site at www.wfsfinancial.com.
