KBRA assigns preliminary ratings to six classes of notes issued by GLS Auto Receivables Issuer Trust 2023-3 (“GCAR 2023-3”), an auto loan ABS transaction.
GCAR 2023-3 represents the third term ABS securitization for Global Lending Services, LLC (“GLS” or the “Company”) in 2023 and the 24th overall. GCAR 2023-3 will issue six classes of notes totaling $451.93 million collateralized by a pool of retail automobile contracts, made to subprime obligors and secured by new and used automobiles.
GLS is an auto finance company founded in 2011 and is majority-owned by funds managed by Sound Point Capital Management, L.P. (“Sound Point”), an alternative asset manager. Funds managed by Sound Point and legacy funds formerly managed BlueMountain Capital Management have invested $135 million since GLS’ inception. Based on financials provided by the Company, GLS has been profitable since 2017. As of June 30, 2023, the Company reported positive unaudited year-to-date net income of approximately $68.5 million, had total assets of over $5.1 billion, total members’ equity of $251.0 million, loss absorbing capital of approximately $478.5 million, and an aggregate managed portfolio balance of $5.6 billion.
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