Exeter Plans Switch to Public ABS Issuances

  • Natalie Mattila
  • October 11, 2017
The Bull

The BullExeter Finance Corp. has not yet made the switch to public asset-backed securities, despite the fact that the lender now has a Securities and Exchange Commission-approved shelf.

Exeter issued its third ABS transaction of the year late last month, which is still designated a rule 144A transaction, according to a presale report by DBRS Inc.

The Exeter Automobile Receivables Trust 2017-3 is a $400 million transaction backed by subprime auto loans. “Exeter itself has an SEC-approved shelf,” Ben Miller, the lender’s senior vice president and treasurer, told Auto Finance News back in March.

“We haven’t started to use it yet, but that’s going to be coming in the not-too-distant future, and we’re hoping to use that as a method of getting more information to investors within the subprime world.”

Previously, issuances from Exeter have been designated as 144A securities — private issuances that do not need to be registered with the SEC. The collateral in the 2017-3 trust ventured deeper into subprime traunches with a weighted average Fico of 566, down from 574 in its 2017-2 pool.

Exeter services a portfolio of 230,000 auto loans with an aggregate outstanding balance of $3.4 billion as of July 31, up from $3.1 billion in February.

For more content like this, check out the 17th annual Auto Finance Summit, which will take place on Oct. 25-27 at the Wynn Las Vegas. To learn more about this year’s event — or to register — visit the Summit’s homepage here.

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