AmeriCredit Announces $1 Billion Asset-Backed Securitization

FORT WORTH, Texas — While the subprime mortgage market continues to falter, it doesn't appear to be impacting solid, subprime auto finance companies who want to tap the credit markets to support their business.

An example of this is AmeriCredit, which announced a $1 billion asset-backed securitization under its automobile receivables trust, which primarily covers subprime loan contracts.

According to officials, the lead managers for the transaction are Credit Suisse, Lehman Brothers and UBS Investment Bank. The co-managers include Barclays Capital, Deutsche Bank Securities and Wachovia Securities.

As with previous securitizations, the company said it will use the net proceeds of this transaction to provide long-term financing of receivables.

During the company's last conference call, Dan Berce, president and chief executive officer, reported, "The credit markets have grown increasingly volatile over the last few weeks, and there are concerns about liquidity across sectors.

"AmeriCredit has a strong balance sheet, with more than $900 million in unrestricted cash at the end of the quarter and committed unused warehouse capacity of more than $3.5 billion at July 31," he continued. "Our warehouse funding agreements have fixed advance rates and no mark or market or margin call provisions. We completed a $1.5 billion securitization in July and are not scheduled to go back to the securitization market until sometime this fall.

"At that time, we anticipate there will be sufficient liquidity in the market to successfully execute a securitization transaction, albeit at wider spreads than our recent deals," he noted.

Later in the conference call, Berce further addressed market concerns saying, "There continues to be widespread concern over the impact of subprime mortgages on the performance of auto and other consumer loan portfolios, the capital markets and the general economy.

"Obviously, we are seeing some spillover impact on the efficiency of capital markets," he said. "As evidenced by our solid credit metrics, we are not seeing an impact on our portfolio performance. Historically, our homeowners perform better than our non-homeowners, and their relative performance did not change during the June quarter."

Berce highlighted that quarterly net credit losses were the lowest in the company's history, which can be attributed both to seasonal improvements and the change in AmeriCredit's portfolio to more prime and near-prime auto loans.

The latest securities will be issued via an owner trust, AmeriCredit Automobile Receivables Trust 2007-D-F, in seven classes of notes.

A-1: $184,000,000

Average Life: 0.22 years

Price: 100.00000

Interest Rate: 5.91393 percent


A-2-A: $164,000,000

Average Life: 0.85 years

Price: 99.99960

Interest Rate: 5.66 percent



A-2-B: $50,000,000

Average Life: 0.85 years

Price: 100.00000

Interest Rate: LIBOR + 0.55 percent



A-3-A: $232,000,000

Average Life: 1.80 years

Price: 99.99556

Interest Rate: 5.49 percent



A-3-B: $40,000,000

Average Life: 1.80 years

Price: 100.00000

Interest Rate: LIBOR + 0.65 percent



A-4-A: $200,000,000

Average Life: 3.22 years

Price: 99.99108

Interest Rate: 5.56 percent



A-4-B: $130,000,000

Average Life: 3.22 years

Price: 100.0000

Interest Rate: LIBOR + 0.80 percent 



Officials said the weighted average coupon on the notes to be paid by AmeriCredit is 5.5 percent.

The note classes are rated by Standard & Poor's, Moody's Investors Service and Fitch Inc. as follows:



A-1

S&P: A-1+

Moody's: Prime-1

Firtch: F1+



All other notes received the same ratings from each company:

S&P: AAA

Moody's: Aaa

Fitch: AAA



AmeriCredit said Financial Security Assurance will provide bond insurance for this transaction.

Moreover, Initial credit enhancement will total 9 percent of the original receivable pool balance building to the total required enhancement level of 13 percent of then outstanding receivable pool balance, executives explained.
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