On the heels of closing a $1.2 billion asset-backed securitization — its largest-ever — Westlake Financial Services is already planning for another “large” ABS before yearend, Chief Financial Officer Paul Kerwin said in a statement on Thursday.
The Los Angeles-based company’s securitization, backed by subprime auto receivables, also marked Westlake’s fifth straight issuance topping $1 billion.
Despite the challenging economic environment, the securitization closed for $300 million more than the initial preliminary amount $900 million laid out in an S&P Global Ratings presale report. “Despite the market pitfalls, Westlake was able to close the ABS with a strong outlook for our investors,” Franka Bicolli, Westlake’s treasury director, said in the press release.
Additionally, the share of longer term loans, those with original terms between 61 and 72 months, increased to 48.6% from 43.8% in the company’s previous 2019-1 transaction, the presale noted. The weighted average loan-to-value ratio increased 50 basis points from the prior transaction to 111.44%. Also, the transaction was largely dominated by used vehicles, with only 6% being new vehicles.
Westlake VP of Marketing David Goff said the ABS closed in late-June; the expected closing date in S&P’s report was June 17.