Tricolor Auto Preps First Rated Securitization

Daniel Chu (center), Tricolor CEO on a panel at Auto Finance Summit 2018

Buy-here, pay-here lender Tricolor Auto Acceptance LLC is preparing to issue its first rated securitization, a $101.7 million transaction slated to close Nov. 21, according to a Kroll Bond Rating Agency presale report released this week.

The securitization is backed by loans with a weighted average Fico score of 583 and a weighted loan-to-value ratio of 124.7%. Average loan balances are $17,742, and average interest rates are 17.68%.

The company, which caters to Hispanic car buyers, had previously issued two unrated deals, in February 2017 and in March 2018.

Separately, TriColor expects to close a $100 million warehouse facility this month, according to Kroll. The lender has another $100 million credit facility slated to expire in December.

Established in 2007, Dallas-based Tricolor operates 33 dealerships in Texas and California. The Texas dealerships are branded as Tricolor, but the six in California are branded as Ganas Auto Group. The Ganas collateral is not included in the rated securitization.

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