LOS ANGELES--(BUSINESS WIRE)--Westlake Financial Services issued an $800 million Asset-Backed Securitization (WLAKE 2017-2) backed by approximately $860 million of automotive loans.
The transaction was led by Wells Fargo Securities (structurer), Credit Suisse, and SMBC Nikko. It is the latest of Westlake’s 14 securitizations, which have been comprised of approximately $5.86B in cumulative note sales.
“This ABS trumps the most recent securitization completed back in March 2017, which was at the time, our largest ABS ever issued of $700 million,” stated Paul Kerwin, Westlake’s Chief Financial Officer. “Our credit performance remains strong in spite of competitive and economic pressures, which attracts investors to our portfolio and enables us to continually increase our securitization amount.”
Westlake’s largest-ever securitization has an expected annualized cost of 2.65% including the initial purchaser’s fees, which is in-line with prior ABS deals, despite higher benchmark interest rates. “Westlake’s ABS continue to perform and investors keep supporting our portfolio,” added Sean Morgan, AVP of Finance – Westlake Financial. “We increased our deal by $100mm with 37 investors on WLAKE 2017-2, which is a reflection of continuous investor demand for Westlake’s ABS.” Westlake maintains 6 borrowing facilities funded by ten banks with combined capacity of $1.48B to support continued growth in its full-spectrum lending platform.
Westlake Financial Services continues to experience increased growth through its nationwide network of automobile dealers. As the largest privately-held automotive lender, the company is active in all 50 states, including Puerto Rico, with a dealer base of over 25,000 franchise and independent dealerships. Westlake’s current portfolio of $4.01 billion includes originated auto loans, portfolio purchases and dealer flooring lines.
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. Flooring 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.