GM Financial has a $975.2 million subprime auto loan securitization in the pipeline. Formerly known as AmeriCredit, GM Financial’s transaction brings year-to-date auto issuance to $5 billion.
The deal, AmeriCredit Automobile Receivables Trust 2013-1, will feature three class A tranches rated AAA, class B notes rated AA, class C notes rated A, class D notes rated BBB, and class E notes rated BB.
Joint bookrunners on the transaction are Deutsche Bank, Goldman Sachs, RBC Capital Markets and RBS, and the joint lead managers on the class A notes are Citigroup and Credit Suisse.
GM Financial joins Ally Financial and Santander in securitizing subprime auto loans this year. Ally plans a $790 million subprime auto ABS deal, while Santander priced a $1.25 billion securitization of subprime auto receivables last week.
Edmunds.com analysts anticipate an increase in subprime auto lending this year, which would allow for more collateral for auto ABS. According to Wells Fargo, subprime auto ABS issuance rose to $18 billion in 2012, from $12.7 billion the previous year.
