Westlake Financial Services Issues $1 Billion ABS to prepare for anticipated 2018 growth
FOR IMMEDIATE RELEASE (February 6, 2018):
Los Angeles, CA – Westlake Financial Services issued its largest Asset- Backed Securitization (ABS) of $1 billion (WLAKE 2018-1) backed by approximately $1.1 billion of automotive loans.
This is Westlake’s largest securitization ever issued with an expected annualized coupon of 3.28%. “Westlake’s past securitizations continue to perform and the company is growing profitably, promoting investor loyalty and sparking interest from new investors,” added Sean Morgan, Vice President of Finance. “With a weighted average credit spread 1.12%, we were on average over 30 bps tighter than our last deal for comparable tranches.”
The transaction was led by JP Morgan (structurer), Wells Fargo, and Bank of Montreal. Westlake’s previous securitization (WLAKE 2017-2) was $800mm. This is the company’s first transaction to offer a single-B rated Class F tranche, which added an additional $57M and brought Westlake’s advance rate to 97%.
“Our focus in 2018 is to continue to gain market share across the credit spectrum,” stated Paul Kerwin, Westlake’s Chief Financial Officer. “The liquidity cushion provided by our ABS investors has enabled us to expand our financing options to near prime and prime credit customers in recent years. Based on our growth trends we expect to be back in the market in Q2 of 2018.”
Westlake Financial Services continues to experience growth through its nationwide dealer network. As the largest privately-held automotive lender, the company is active in all 50 states, including Puerto Rico, with a dealer base of over 20,000 franchise and independent dealerships. Westlake’s current portfolio of $6.2 billion includes originated auto loans and leases, portfolio purchases, and dealer floor plan lines of credit.
About Westlake Financial Services: Westlake is an internet based, privately held finance company that specializes in the acquisition and servicing of prime to sub-prime automotive retail installment contracts. Headquartered in Southern California, Westlake originates indirect retail installment contracts through a nationwide network of new and used car dealers throughout the United States. Westlake also offers portfolio purchasing through their ALPS division (Advanced Lending & Portfolio Services); www.WestlakeALPS.com. Direct to consumer title loans and unsecured loans are done through Westlake’s wholly owned subsidiary, Wilshire Consumer Credit. Floor plan lines of credit are done through their Westlake Flooring Services division; www.WestlakeFlooringServices.com. All collections and servicing are performed in-house from its central facility located in the Mid-Wilshire area of Los Angeles.