Thursday, Sep. 24, 2020, 11:04 AM
This week, Tricolor went back to the investment world, announcing the sixth securitization in company history.
The Community Development Financial Institution (CDFI) and the used-car retailer focusing on the sale and financing of vehicles to Hispanics said their action included the issuance of $167 million of asset-backed bonds secured by a pool of its installment contracts.
The company said the portfolio included contracts originated by Tricolor’s affiliate company, Ganas Auto Group, which operates in California.
Tricolor said in a news release that the Class A and Class B bonds were placed with a diversified mix of institutional investors in a private offering pursuant to Rule 4(a)(2) under the Securities Act of 1933, as amended.
JPMorgan Chase & Co. served as the investment advisor and representative of the purchasers.
“Tricolor’s use of technology to help financially underserved borrowers gain access to a high-quality vehicle and affordable financing even amidst these turbulent times stands out within the capital markets,” Tricolor Holdings chief executive officer Daniel Chu said.
“We are grateful to our consumers for their outsized role as essential workers on the front lines of the pandemic over the last six months,” Chu continued. “In return, we remain committed to innovating on their behalf to help all low-income individuals bridge the economic inequality gap in America.”
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,” the company said.