LOS ANGELES–(COMMERCIAL THREAD) – Westlake Financial Services issued its largest $ 1 billion Asset Backed Securitization (ABS) (WLAKE 2018-1) backed by approximately $ 1.1 billion in auto loans.
This is Westlake’s largest securitization ever issued with an expected annualized coupon of 3.28%. “Westlake’s past securitizations continue to work and the company is growing profitably, fostering investor loyalty and attracting new investor interest,” added Sean Morgan, vice president of finance. “With a weighted average credit spread of 1.12%, we were on average more than 30bp tighter than our last trade for comparable tranches.”
The transaction was led by JP Morgan (structurer), Wells Fargo and the Bank of Montreal. Westlake’s previous securitization (WLAKE 2017-2) was $ 800 million. This is the company’s first transaction to offer a B-rated Class F tranche, which added an additional $ 57 million and raised Westlake’s advance rate to 97%.
“Our goal in 2018 is to continue to gain market share across the entire credit spectrum,” said Paul Kerwin, CFO of Westlake. “The liquidity cushion provided by our ABS investors has enabled us to extend our funding options to prime and premium credit clients in recent years. Based on our growth trends, we expect to be back in the market in the second quarter of 2018. ”
Westlake Financial Services continues to grow through its nationwide dealer network. As the largest private auto lender, the company operates in all 50 states, including Puerto Rico, with a dealer base of more than 20,000 franchised and independent dealers. Westlake’s current portfolio of $ 6.2 billion includes auto loans and leases, portfolio purchases and lines of credit for dealers.
About Westlake Financial Services: Westlake is a private Internet-based finance company specializing in the acquisition and management of prime to subprime retail automobile installments. Based in Southern California, Westlake pioneers indirect retail contracts through a nationwide network of new and used car dealers across the United States. Westlake also offers portfolio purchases through its ALPS (Advanced Lending & Portfolio Services) division; www.WestlakeALPS.com. Direct consumer loans and unsecured loans are made through Westlake’s wholly owned subsidiary, Wilshire Consumer Credit. Floor plan lines of credit are made through their Westlake Flooring Services division; www.WestlakeFlooringServices.com. All collection and maintenance is carried out in-house from its central facility located in the Mid-Wilshire area of Los Angeles.