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Banking industry

Westcorp Announces $1.0 Billion Offering of Automobile Receivable Asset-Backed Securities

Strategic Insights

— 1 min read

Westcorp, a financial services holding company, has announced the pricing of a $1.0 billion offering of automobile receivable asset-backed securities through its subsidiary WFS Financial Inc. This milestone transaction marks the fourth consecutive $1.0 billion automobile asset-backed securities transaction for WFS, solidifying its position as a leading issuer of such securities in the U.S. The securities will be issued via an owner trust, WFS Financial 1999-B, in five classes, with ratings from Standard & Poor's and Moody's Investor Services, Inc.

Key Takeaways:

  • WFS Financial Inc has securitized over $14 billion of automobile asset-backed securities in 45 transactions since 1985, making it the fourth largest issuer of such securities in the U.S.
  • The offering is comprised of five classes of securities, with the Class A-1 Notes rated A-1+ by Standard & Poor's and P-1 by Moody's Investor Services, Inc.
  • Timely principal and interest payments on the Notes are guaranteed by an insurance policy provided by Financial Security Assurance Inc.
  • The ratings by Standard & Poor's of the Notes will be issued without regard to the benefit afforded by the insurance policy.
  • The offering was lead managed by Bear, Stearns & Co. Inc. and co-managed by Banc of America Securities LLC, Credit Suisse First Boston, and Donaldson Lufkin & Jenrette.
  • This deal is expected to close on July 20, 1999.
  • WFS is one of the nation's largest independent automobile finance companies, specializing in originating, securitizing, and servicing new and used automobile contracts.
  • WFS currently services over $4.8 billion of automobile contracts.

Statistics:

  • $14 billion: The total amount of automobile asset-backed securities securitized by WFS since 1985 in 45 transactions.
  • $1.0 billion: The size of the current offering of automobile receivable asset-backed securities.
  • 5: The number of classes of securities issued via the owner trust, WFS Financial 1999-B.
  • 45: The number of transactions in which WFS has securitized automobile asset-backed securities since 1985.
  • $4.8 billion: The total amount of automobile contracts serviced by WFS.

Sources:

  • Business Wire, "Westcorp Announces Pricing of $1.0 Billion Offering of Automobile Receivable Asset-Backed Securities," July 13, 1999.
  • Westcorp press release.

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