DALLAS, Nov. 26, 2018 (GLOBE NEWSWIRE) -- Tricolor, the nation’s largest used vehicle retailer focusing on the sale and financing of vehicles to the Hispanic consumer, today announced its fifth securitization, an issuance of $101 million of asset-backed bonds secured by a pool of its installment loans. The portfolio included loans originated by Tricolor’s affiliate company, Ganas Auto Group, which operates in California. Credit Suisse was the sole book-running manager.
The Class A, Class B, Class C, and Class D bonds that were issued received ratings of A-, BBB-, BB-, and unrated, respectively, from Kroll Bond Rating Agency. The Class A, Class B and Class C, and Class D bonds were placed with a diversified mix of institutional investors in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended.
“We are enthusiastic about completing our inaugural rated transaction and attracting a strong and growing set of institutional investors,” remarked Daniel Chu, CEO of Ganas Holdings, the parent company of Tricolor Auto Group, which operates in Texas, and Ganas Auto Group, which operates in California. “We believe our robust capital markets platform serves as a validation for our tech-enabled approach to bringing financial inclusion to an underserved market.”
Over a ten-day span, the Company closed a total of $243 million in new financings, as it also announced it has closed a $133 million warehouse facility with Credit Suisse to support the origination of retail installment loans by its network of branded dealerships, as well as a $8.5 million residual financing on its securitization last March.
According to the Consumer Financial Protection Bureau (CFPB), 26 million people in the United States are “credit invisible” and an additional 19 million are “unscoreable,” corresponding to a total of 45 million people in the United States whose lack of a credit score translates into limited options in terms of accessing financing for a major purchase such as a motor vehicle.
Since its founding in 2007, Tricolor empowers its customers by providing access to affordable financing on high quality, certified vehicles in order to enhance the quality of their lives and ultimately help them to build a better future. On a combined basis, Tricolor and Ganas have served nearly 50,000 customers and disbursed nearly $900 million in affordable auto loans by using its proprietary model to segment risk.
Tricolor issued its first securitization in July 2013.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
For more information about Tricolor and Ganas, please visit tricolor.com and ganas.com.
About Tricolor
Tricolor is a mission-driven company which sells and finances high quality, certified used motor vehicles through its premium brands, Tricolor Auto Group in Texas and Ganas Auto Group in California, utilizing advanced data analytics and technology to advance financial inclusion to a highly underserved market and offer responsible, affordable, credit-building auto loans to individuals with no or limited credit history.
Headquartered in Dallas, Tricolor, together with its affiliate, Ganas Auto Group, operate thirty retail dealerships across twelve markets in Texas and California, as well as a shared services center in Guadalajara, Mexico.
CONTACT INFORMATION
Stephanie Hicks
Cosmo PR for Tricolor
(805) 295-9455
stephanie@cosmo-pr.com