HOUSTON, Jan. 25, 2013 /PRNewswire/ -- First Investors Financial Services, Inc. announced that it has completed the issuance of $187 million in term asset-backed notes in a private placement transaction. The notes were issued by a wholly-owned subsidiary of the Company through the First Investors Auto Owner Trust 2013-1. The notes consist of five sequential pay classes that carry a weighted average coupon rate at issuance of 1.03%. Initial credit enhancement consists of a cash reserve account equal to 1.5% of the outstanding principal balance of the initial receivables pool and an initial overcollateralization of 0%, which will increase to a target of 2.5% through cash collections. The issuance represented the Company's fifth term securitization since January 2011. Proceeds from the issuance were used to reduce the amount of borrowings outstanding under the Company's warehouse credit facility in order to allow room for growth in the Company's portfolio of receivables held for investment.
First Investors is a consumer finance company engaged in originating and holding for investment automobile finance receivables and promissory notes originated from franchised automobile dealers or through a refinancing transaction with the vehicle owner. The Company specializes in lending to consumers with impaired credit profiles. The Company also purchases receivables through portfolio acquisitions or from third party originators and performs third-party loan servicing for unaffiliated clients. The Company is headquartered in Houston, Texas. Copies of this press release and other information on the Company, including its historical financial statements, are also available on the Company's web site at www.fifsg.com.
The statements contained in this release, which are not historical statements of fact, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve a number of risks and uncertainties. The actual results of future events could differ materially from those stated in any forward-looking statements herein.
SOURCE First Investors Financial Services