KBRA assigns preliminary ratings to six classes of notes issued by GLS Auto Select Receivables Trust 2023-2 (“GSAR 2023-2”), a near prime auto loan ABS transaction.
GSAR 2023-2 represents the second near prime term ABS securitization for Global Lending Services LLC (“GLS” or the “Company”). The inaugural transaction for the GSAR platform closed in June 2023. The Company has also issued 24 securitizations under their GCAR program, 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 2023-2 is comprised of “Select Program” loans only.
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 by BlueMountain Capital Management have invested $135 million since inception. Based on financials provided by the Company, GLS has been profitable since 2017. As of July 31, 2023, the Company reported positive unaudited year-to-date net income of approximately $74.5 …
