Nonprime lender Flagship Credit Acceptance LLC issued its first securitization today, a $109 million transaction. The four-tranche deal was rated by Standard & Poor’s and Kroll Bond Rating Agency.
Chadds Ford, Pa.-based Flagship plans to use the funds from the securitization to increase its liquidity position and further grow its auto finance business.
“We are delighted about this transaction,” said Michael Ritter, Flagship’s founder and chief executive. “Access to the capital markets, especially in today’s economy, is critically important and necessary to achieving long-term growth and success in the auto financing industry.”
With its inaugural securitization complete, Flagship plans to return to the ABS market regularly. “This securitization is a major step in Flagship’s evolution as a nationally recognizable lender in the below-prime financing sector, and we anticipate being a regular issuer of asset-backed securities in the future,” Ritter said.
Flagship is an affiliate of Perella Weinberg Partners’ Asset Based Value strategy. It has more than 100 employees, and does business with 2,000 dealers in 31 states.