Sign in Subscribe
Banking industry

Westcorp Announces $500 Million Offering of Automobile Receivable Asset-Backed Securities

Strategic Insights

— 1 min read

Westcorp, a leading financial services holding company, has priced a $500 million offering of automobile receivable asset-backed securities through its subsidiary WFS Financial Inc. This transaction marks a significant milestone for Westcorp, which has been securitizing automobile assets since 1985 and has become the fourth largest issuer of such securities in the US. The offering, which is expected to close on November 3, 1999, will be issued in four classes, each rated AAA by Standard & Poor's and Aaa by Moody's.

Key Takeaways:

  • Westcorp has priced a $500 million offering of automobile receivable asset-backed securities through its subsidiary WFS Financial Inc.
  • The securities will be issued in four classes: Class A-1, A-2, and A-3 Notes and the Certificates, each rated AAA by Standard & Poor's and Aaa by Moody's.
  • The transaction is expected to close on November 3, 1999, and is managed by Banc of America Securities LLC, co-managed by Credit Suisse First Boston and Donaldson, Lufkin & Jenrette.
  • Westcorp has securitized over $14 billion of automobile asset-backed securities in 46 transactions since 1985, making it the fourth largest issuer of such securities in the US.
  • The company's subsidiary, WFS Financial, specializes in the origination, securitization, and servicing of new and used automobile contracts through its nationwide relationships with automobile dealers.
  • WFS currently services over $5.2 billion of automobile contracts.

Statistics:

  • $500 million: The size of the offering of automobile receivable asset-backed securities.
  • 46: The number of transactions where Westcorp has securitized automobile asset-backed securities since 1985.
  • $14 billion: The value of automobile asset-backed securities securitized by Westcorp since 1985.
  • 4: The number of classes of securities issued in the offering.
  • 25: The number of retail bank branches operated by Westcorp's subsidiary, Western Financial Bank, in California.
  • 1995: The year when Moody's and Standard & Poor's started to rate WFS' automobile asset-backed securities.
  • 1985: The year when WFS started to securitize automobile asset-backed securities.

Sources:

  • BUSINESS WIRE, Irvine, Calif.--(BUSINESS WIRE)--Oct. 28, 1999
  • Westcorp's web site, www.wfsfinancial.com
  • Westcorp's subsidiary, WFS Financial's, web site, www.wfsfinancial.com

Read more