AmeriCredit Announces $600 Million Asset-Backed Securitization
February 09, 2010
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FORT WORTH, Texas — Late last week, AmeriCredit Corp. announced the pricing of a $600 million offering of automobile receivables-backed securities. This securitization is through lead managers Barclays Capital and Deutsche Bank Securities.
Credit Suisse, UBS Investment Bank and Wells Fargo Securities are co-managers.
AmeriCredit explained that net proceeds from securitization transactions are used to provide long-term financing of its receivables.
Officials said the securities will be issued through an owner trust - AmeriCredit Automobile Receivables Trust 2010-1. They will be issued in six classes of notes:
| Note Class | Amount | Average Life | Price | Interest Rate |
| A-1 | $132.6 million | 0.23 years | 100.00000 | 0.29642 percent |
| A-2 | $147.54 million | 0.85 years | 99.99996 | 0.97 percent |
| A-3 | $123.3 million | 1.85 years | 99.99412 | 1.66 percent |
| B | $75.864 million | 2.73 years | 99.99726 | 3.72 percent |
| C | $79.308 million | 3.55 years | 99.98863 | 5.19 percent |
| D | $41.388 million | 3.84 years | 99.97619 | 6.65 percent |
Executives explained that the weighted average coupon on the Notes to be paid by AmeriCredit is 3.7 percent.
Continuing on, Standard & Poor's and Moody's Investors Service rated the Note Classes as follows:
| Note Class | Standard & Poor's | Moody's |
| A-1 | A-1+ | Prime-1 |
| A-2 | AAA | Aaa |
| A-3 | AAA | Aaa |
| B | AA | Aa1 |
| C | A | A2 |
| D | BBB | Baa3 |
The initial credit enhancement of the 2010-1 transaction will be 15 percent. This will consists of a 2 percent cash deposit and 13 percent overcollateralization.
AmeriCredit said the total required enhancement will build to 23.25 percent of the then-outstanding receivable pool balance. This includes the initial 2 percent cash deposit. Latest News
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