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Flagship Credit Acceptance Completes $400 Million Asset-Backed Securitization

Flagship Credit Acceptance LLC (“Flagship” or “the Company”), a leading auto-finance provider, today announced that it has completed its fifteenth rated asset-backed securitization of the Company, Flagship Credit Auto Trust 2016-2 (“FCAT 2016-2” or “Transaction”). The Transaction issued $400 million of Notes which closed on May 5, 2016 with a weighted average effective coupon on the notes of approximately 4.38%. FCAT 2016-2 was able to upsize its original offering size of $350 million to $400 million due to strong investor demand. The Offered Notes consisted of four classes and were assigned ratings by Standard and Poor’s Financial Services LLC, Kroll Bond Rating Agency, Inc. and DBRS, Inc. from AA/AA/AAA (sf) to BB-/BB/BB(h) (sf) ratings, respectively. Wells Fargo Securities and Deutsche Bank Securities were joint book-runners for the transaction.

Michael Ritter, Founder and Chief Executive Officer of Flagship Credit, said, “In an increasingly unpredictable capital markets environment, we are incredibly pleased about the closing of our recent securitization, which was able to increase its original offering size by 14% due to strong investor demand while simultaneously achieving 0.42% reduced weighted average credit spread premium over the Company’s prior deal. Our ability to access the capital markets is important and necessary to achieving long-term growth and success in the auto finance industry and we are thrilled that our securitization investor base continues to believe in the Company with the successful execution of our second securitization of the year.”

Flagship currently employs approximately 845 professionals who focus on a customer service driven lending model. The Company provides financing to borrowers that do not typically have access to prime credit lending terms for the purchase of affordable, late-model vehicles and the refinancing of existing automotive financings. Flagship uniquely operates two origination channels, helping its auto dealership network of over 9,400 meet the growing demand in the below prime market and helping consumers, through, who seek automotive financing online.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy the Notes.

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