AmeriCredit Announces $1.7 Billion Asset-Backed Securitization; First Transaction with MBIA as Primary Bond Insurer.Business Editors
FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 18, 2002
AMERICREDIT CORP. (NYSE NYSE
See: New York Stock Exchange :ACF (Advanced Communications Function) An earlier official product line name for IBM SNA programs, such as VTAM (ACF/VTAM) and NCP (ACF/NCP).
ACF - Advanced Communications Function ) announced the pricing of a $1.7 billion offering of automobile receivables-backed securities through lead managers Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. and Deutsche Bank Securities and co-managers Bank One Capital Markets, Inc., Lehman Brothers, Merrill Lynch & Co. and Wachovia Securities, Inc.
The company uses net proceeds Net Proceeds
The amount received after all costs are deducted from the sale of a piece of property or security.
In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from securitization transactions to provide long-term financing Long-term financing
Liabilities repayable in more than one year plus equity. of automobile retail installment
This transaction is AmeriCredit's first term securitization transaction with MBIA MBIA Montana Building Industry Association
MBIA Municipal Bond Insurance Association
MBIA Michigan Boating Industries Association
MBIA Municipal Bond Investors Assurance
MBIA Massachusetts Brain Injury Association
MBIA Maryland Business Incubation Association Insurance Corporation (NYSE:MBI MBI Management Buy-In
MBI Moody Bible Institute
MBI Mathematical Biosciences Institute
MBI Modular Building Institute
MBI Mechanical Breakdown Insurance
MBI Molecular Biology Institute
MBI Maslach Burnout Inventory (psychometrics) ) as the primary bond insurer. It is structured as an on-book financing and therefore
does not require gain-on-sale treatment.
"With this securitization, we're successfully executing our strategies to fully fund the required credit enhancement at closing
and to expand our bond insurance program," said AmeriCredit Chief
Financial Officer Daniel E. Berce. "These are important steps in our effort to position AmeriCredit for stronger long-term performance."
The securities will be issued via an owner trust, AmeriCredit Automobile Receivables Trust 2002-E-M, in seven classes of Notes:
Note Class Amount Average Life Price Interest Rate ---------- ------ ------------ ----- ------------- A-1 $ 292,000,000 0.23 years 100.00000 1.81875% A-2-A $ 140,000,000 0.90 years 99.99451 2.16% A-2-B $ 267,000,000 0.90 years 100.00000 Libor + .15% A-3-A $ 100,000,000 2.06 years 99.99305 2.97% A-3-B $ 540,000,000 2.06 years 100.00000 Libor + .26% A-4-A $ 160,000,000 3.40 years 99.98491 3.67% A-4-B $ 201,000,000 3.40 years 100.00000 Libor + .37% ------------ $1,700,000,000 ==============
The weighted average coupon Weighted average Coupon
The weighted average of the gross interest rates of mortgages underlying a pool as of the pool issue date; the balance of each mortgage is used as the weighting factor. is 3.2%.
The Note Classes are rated by Standard & Poor's, Moody's Investors Service Moody's Investors Service
A leading global credit rating, research and risk analysis firm.
Moody's Investors Service
A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc. and Fitch, Inc. The ratings by Note Class are:
Note Class Standard & Poor's Moody's Fitch ---------- --------------------------- ------- ----- A-1 A-1+ Prime-1 F1+ A-2-A AAA Aaa AAA A-2-B AAA Aaa AAA A-3-A AAA Aaa AAA A-3-B AAA Aaa AAA A-4-A AAA Aaa AAA A-4-B AAA Aaa AAA
This transaction represents AmeriCredit's 36th securitization of automobile receivables in which a total of more $27 billion of
automobile receivables-backed securities has been issued.
AmeriCredit Corp. is the largest independent middle-market auto finance company in North America. Using its branch network and
strategic alliances with auto groups and banks, the company purchases installment contracts made by auto dealers to consumers who are
typically unable to obtain financing from traditional sources.
AmeriCredit has more than one million customers throughout the United States and Canada and more than $15 billion in managed auto receivables. The company was founded in 1992 and is headquartered in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States, and voted one of "America’s Most Livable Communities. . For more information, visit www.americredit.com.