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.
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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.
