Hoist the flags and set sail!
Indirect auto finance company Flagship Credit Acceptance LLC said it completed an asset-backed securitization of $266 million of notes in a transaction that closed on April 17, 2014. The notes were issued in five tranches and were assigned ratings by Standard & Poor’s Ratings Services and Kroll Bond Rating Agency.
It is the company’s fourth asset-backed securitization and first transaction in which it was able to procure a double-A rating from S&P on its Class A tranche.
Proceeds from the recently closed securitization will be utilized to support Flagship’s strategic growth plans and its auto finance consumer lending activities. That includes an expansion of its Phoenix facility to accommodate growth in the company’s western region.
Flagship currently has 250 employees and provides subprime financing through a network of around 5,000 dealerships across 41 states.
Michael Ritter, Founder and Chief Executive Officer of Flagship, said “Flagship continues to make significant progress on our growth strategy and we are proud of our accomplishments to date. These achievements represent the steady progression in Flagship’s evolution as a nationally recognizable lender in the below-prime financing arena. Our ability to access the capital markets is critically important and necessary to achieving long-term growth and success in the auto finance industry, and we are pleased with the execution and level of investor interest in our fourth issuance.”
