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.
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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