FORT WORTH, Texas--(BUSINESS WIRE)--Feb. 22, 2006--AMERICREDIT
CORP. (NYSE:ACF) announced today the pricing of a $945 million
offering of automobile receivables-backed securities through lead
managers Deutsche Bank Securities and JPMorgan. Co-managers are
Barclays Capital, Credit Suisse and Wachovia Securities. AmeriCredit
uses net proceeds from securitization transactions to provide
long-term financing of its receivables.
This transaction employs a combination of subordinated notes,
overcollateralization and restricted cash to support the ratings in
place of bond insurance. This transaction represents the Company's
sixth senior subordinate securitization.
The securities will be issued via an owner trust, AmeriCredit
Automobile Receivables Trust 2006-1, in seven classes of Notes:
Note Class Amount Average Life Price Interest Rate
----------- -------------- --------------- ------------ --------------
A-1 $166,000,000 0.25 years 100.00000 4.78%
A-2 309,000,000 0.95 years 99.99870 5.11%
A-3 200,000,000 2.12 years 99.99342 5.11%
B 75,000,000 2.95 years 99.97757 5.20%
C 80,000,000 3.52 years 99.99176 5.28%
D 50,000,000 3.68 years 99.97768 5.49%
E 65,000,000 1.67 years 99.99515 6.62%
--------------
$945,000,000
==============
The weighted average coupon on the Notes to be paid by AmeriCredit
is 5.3%. For comparative purposes, senior subordinate structures do
not require payments to a bond insurance guarantor.
The 2006-1 transaction will have initial credit enhancement of
7.00% of the original receivable pool balance, building to the total
required enhancement level of 16.5% of the then-outstanding receivable
pool balance. The initial 7.00% enhancement will consist of a 1.50%
cash deposit and 5.50% overcollateralization.
Overcollateralization in a senior subordinate securitization is
not comparable to a bond-insured transaction due to credit enhancement
support needed for the subordinated bonds under certain severe loss
assumptions as required by the rating agencies.
The Note Classes are rated by Standard & Poor's and Moody's
Investors Service. The ratings by Note Class are:
Note Class Standard & Poor's Moody's
---------------------- ---------------------- ----------------------
A-1 A-1+ Prime-1
A-2 AAA Aaa
A-3 AAA Aaa
B AA Aa2
C A A2
D BBB+ Baa2
E BB Ba2
This transaction represents AmeriCredit's 52nd securitization of
automobile receivables in which a total of more than $42 billion of
automobile receivables-backed securities has been issued.
Copies of the prospectus relating to this offering of
receivables-backed securities may be obtained from the managers and
co-managers. This press release shall not constitute an offer to sell
or the solicitation of an offer to buy the securities described in
this press release, nor shall there be any sale of these securities in
any State in which such offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities laws
of any such State.
AmeriCredit Corp. is a leading independent auto finance company.
Using its branch network and strategic alliances with auto groups and
banks, the Company purchases retail installment contracts entered into
by auto dealers with consumers who are typically unable to obtain
financing from traditional sources. AmeriCredit has approximately one
million customers and $11 billion in managed auto receivables. The
Company was founded in 1992 and is headquartered in Fort Worth, Texas.
For more information, visit www.americredit.com.
CONTACT: AmeriCredit Corp., Fort Worth
Investor Relations
Caitlin DeYoung, 817-302-7394
or
Media Relations
John Hoffmann, 817-302-7627
SOURCE: AmeriCredit Corp.