Avid Acceptance LLC has finalized an asset-backed warehouse facility with Capital One — its second such facility in four months — adding $50 million of liquidity, Chief Financial Officer Curtis Ash told Auto Finance News.
The new Capital One credit facility, combined with a JPMorgan Chase facility established in November 2018, furthers the Salt Lake City-based lender’s strategy for short- and long-term growth. “We’ve been talking with [Capital One] for the last six to eight months, cultivating the relationship and making sure both parties were agreeable to structure and terms,” Ash said.
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Avid has plans to issue its second asset-backed securitization in the third quarter. The lender will combine auto loan receivables from both its warehouse facilities, an existing credit line, alternative funding sources, and a securitization prefunding feature for the anticipated $200 million transaction.
Avid, which serves subprime consumers in Chapter 7 or Chapter 13 bankruptcy, completed its $114 million inaugural securitization in January 2018. Since then, Avid’s portfolio has increased to $155 million and its footprint increased to nearly 900 dealers in 26 states. By comparison, in November 2018, Avid had $104 million of outstandings and did business with 395 dealers in 17 states.
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