Flagship Credit Acceptance Reveals Inaugural Issuance of $109 Million Asset-Backed Securitization
July 13, 2012
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CHADDS FORD, Pa. — Flagship Credit Acceptance, a national
indirect automobile finance company, announced the issuance of its first
The total amount was $109 million in a transaction that was completed Thursday.
Officials highlighted the securitization will increase Flagship's liquidity position and will allow the company to further grow its auto finance business.
As part of the securitization, notes were issued in four tranches and were assigned ratings by Standard & Poor's Ratings Services and Kroll Bond Rating Agency.
Michael Ritter, founder and chief executive officer of Flagship, declared, "We are delighted about this transaction. Access to the capital markets, especially in today's economy, is critically important and necessary to achieving long-term growth and success in the auto financing industry.
"This securitization is a major step in Flagship's evolution as a nationally recognizable lender in the below-prime financing sector, and we anticipate being a regular issuer of asset-backed securities in the future," Ritter continued.
Flagship indicated it currently employs more than 100 professionals who focus on a customer service driven lending model. The company aims to provide financing to consumers with limited access to traditional financing sources through its broad network of more than 2,000 dealer relationships, predominantly franchised, across 31 states.
Back in February, Flagship announced its controlling shareholder increased its capital investment to support the company's growing auto finance platform.
Flagship also revealed it entered into an agreement with Wells Fargo Bank to renew and increase its commercial credit facility to $175 million.
Officials explained the credit facility represents an additional committed source of liquidity to fund the company's auto finance consumer lending activities. They added the facility also will be utilized to support Flagship's strategic growth plans.
"By continuing to expand Flagship's capital base, we are demonstrating our ongoing commitment to increasing the company's consumer lending activities," Ritter stated.
"As we continue to grow, we will build upon our solid underwriting and servicing platforms. We are pleased to have the support of our shareholders and debt providers as we look to assist even more dealers in providing auto finance solutions to their below-prime car buyers," Ritter concluded.
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