KBRA assigns preliminary ratings to six classes of notes issued by GLS Auto Receivables Issuer Trust 2022-2 (“GCAR 2022-2”), an auto loan ABS transaction.
GCAR 2022-2 represents the second term ABS securitization for Global Lending Services, LLC (“GLS” or the “Company”) in 2022 and the twentieth overall. GCAR 2022-2 will issue six classes of notes totaling $694.36 million collateralized by a pool of retail automobile contracts, made to subprime obligors and secured by new and used automobiles.
GLS is a subprime auto finance company founded in 2011 and is majority-owned by Assured Investment Management LLC (“Assured”), an alternative asset manager owned by funds managed by Assured Guaranty Ltd, an insurance company. Assured (formerly BlueMountain Capital Management) has invested $135 million since inception. Based on financials provided by the Company, GLS has been profitable since 2017. As of March 31, 2022, the Company reported positive year-to-date net income of $45.281 million had total assets of approximately $4.7 billion, total members’ equity of $363.9 million and an aggregate outstanding portfolio balance of $4.32 billion.
KBRA applied its Auto Loan ABS Global Rating Methodology as well …
