KBRA assigns preliminary ratings to six classes of notes issued by GLS Auto Receivables Issuer Trust 2023-2 (“GCAR 2023-2”), an auto loan ABS transaction.
GCAR 2023-2 represents the second term ABS securitization for Global Lending Services, LLC (“GLS” or the “Company”) in 2023 and the 23rd overall. GCAR 2023-2 will issue six classes of notes totaling $311.32 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, 2023, the Company reported positive unaudited year-to-date net income of approximately $36.7 million had total assets of over $4.8 billion, total members’ equity of $226.9 million, loss absorbing capital of approximately $448.4 million and an aggregate outstanding portfolio balance of $5.3 billion.
KBRA …
