Westlake Financial Services Issues $1.2 Billion Record-Breaking ABS
FOR IMMEDIATE RELEASE (July 18, 2019): Los Angeles, CA
Westlake Financial Services announces the closing of its 19th Asset-Backed Securitization (WLAKE 19-2) at $1.2 billion. This latest securitization is the largest ever in Westlake history and the fifth consecutive issuance over $1 billion.
“Our largest ever ABS is an indication of our Company’s continued growth and increasing market share,” stated Paul Kerwin, CFO of Westlake Financial Services. “We expect this growth to continue, and plan for another large ABS before the end of the year. I would like to thank our Capital Markets & Treasury team for executing another successful deal.”
During this securitization market trade tensions caused a rally in Treasuries, leading Libor rates to plummet 0.65% compared to Westlake’s February deal. Despite these factors Westlake was able to secure investor confidence, with returning investors accounting for 33 of the transaction’s 36 total participants.
“Despite the market pitfalls, Westlake was able to close the ABS with a strong outlook for our investors,” commented Franka Bicolli, Director of Treasury of Westlake Financial. “We added 3 new investors to our large pool of consistent participants. We also increased our spread concession by 0.08%, placing the overall rate 0.58% lower than our February transaction.”
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 plus Puerto Rico, with a dealer base of over 20,000 franchise and independent dealerships. Westlake’s current portfolio of $8.3 billion includes originated auto loans and leases, direct-to-consumer loans, portfolio purchases and servicing, and dealer floor plan lines of credit.
About Westlake Technology Holdings: Westlake Technology Holdings is an auto and finance technology company headquartered in Los Angeles, CA with approximately $8.33 billion in assets under management. Westlake Financial Services originates indirect automotive retail installment contracts through a nationwide network of new and used automotive and powersports dealers. Westlake also offers loan portfolio purchasing, credit facilities and portfolio servicing through their ALPS division (Advanced Lending & Portfolio Services); www.WestlakeALPS.com. Floor plan lines of credit are provided through their Westlake Flooring Services division, www.WestlakeFlooringServices.com, shared cash flow auto lending through Westlake’s wholly owned subsidiary, Western Funding Inc., a Nevada based auto lender, and indirect automotive leasing for credit unions through Westlake subsidiary, Credit Union Leasing of America (CULA). Dealer leads and direct-to-consumer auto loans are offered through Westlake Direct. Consumer title loans are through Westlake’s wholly owned subsidiary Loan Center, www.loancenter.com.