KBRA assigns preliminary ratings to six classes of notes issued by GLS Auto Select Receivables Trust 2023-1 (“GSAR 2023-1”), a near prime auto loan ABS transaction.
GSAR 2023-1 represents the inaugural near prime only term ABS securitization for Global Lending Services LLC (“GLS” or the “Company”). The Company has also issued 23 securitizations, collateralized by mostly subprime auto loans, since its inaugural issuance in 2014. The Company began originating subprime loans in 2013 and near prime loans via the “Select Program” in October 2021. The “Select Program” is a distinct product offering separate from the Company’s subprime originations. The collateral in GSAR 2023-1 is comprised of “Select Program” loans only.
GLS is an 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’ …