KBRA Assigns Preliminary Ratings to GLS Auto Select Receivables Issuer Trust 2025-3
23 Jun 2025 | New York
KBRA assigns preliminary ratings to four classes of notes (five tranches) issued by GLS Auto Select Receivables Issuer Trust 2025-3 ("GSAR 2025-3"), an auto loan ABS transaction.
GSAR 2025-3 represents the eighth near prime term ABS securitization for Global Lending Services LLC (“GLS” or the “Company”), and the second near-prime public securitization of 2025. Since 2014, the Company has also issued 31 securitizations under its GCAR program, collateralized by mostly subprime auto loans. GSAR 2025-3 will issue four classes of notes (five tranches) totaling $242.3 collateralized by a pool of retail automobile contracts, made to near prime obligors and secured by new and used automobiles. Credit enhancement on the notes is composed of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.
GLS is an auto finance company that was 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 March 31, 2025 the Company reported positive unaudited year-to-date net income of approximately $108.0 million, had total assets of approximately $8.26 billion, total members’ equity of $165.4 million, loss absorbing capital of approximately $697.3 million, and an aggregate managed portfolio balance of $8.3 billion.
KBRA applied its Auto Loan ABS Global Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure, and GLS’s historical static pool data. KBRA considered its operation review of GLS, as well as periodic due diligence calls with GLS. Operative agreements and legal opinions will be reviewed prior to closing.
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