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PRESTIGE FINANCIAL SECURITIZES $128.5 MILLION LOAN PORTFOLIO

Prestige Financial Services, Inc. has recently completed its third term securitization transaction, issuing $111,181,556 in bonds backed by $128,533,591 in sub prime automotive receivables. Underwritten by Banc One Capital Markets and insured by Financial Security Assurance Corporation (FSA), the bonds were purchased by qualified institutional buyers in a private offering pursuant to Rule 144A under the Securities Act.

The bonds were rated Aaa/AAA by Moody’s Investors Services and Standard & Poor’s based on the FSA financial guaranty insurance policy and Prestige’s ability as an originator and servicer. This securitization is considered to be the company’s most significant financial event since its inception.

“Even with its obvious risks, the current economic climate presents a tremendous opportunity,” observes Prestige COO Robert Avery. “With this securitization, we’ll continue to grow the company’s revenues and profits, leveraging our excellent collections processes and dealership relations. As volumes increase, we plan to securitize at least once a year.”

Prestige provides consumer financing solutions for over 130 automobile dealerships throughout the western United States. Founded in 1994 with three employees to serve primarily as an in-house financing service for credit-challenged customers of Larry H. Miller Dealerships, Prestige now employs more than 140 credit professionals and support staff to provide automobile financing services for a wide range of borrower types, and is recognized throughout the industry for its innovative lending programs.

“This is the third transaction we have guaranteed for Prestige Financial,” says Mark Castiglione, Managing Director of Consumer Finance and New Products at FSA. “Like many leading issuers in the consumer finance markets, Prestige relies on us for cost efficient securitization programs that give them the opportunity to react quickly to new market opportunities.”
All bonds included in this securitization having been sold, this announcement of their sale appears as a matter of record only.

Prestige Financial Securitizes $105 Million Loan Portfolio

Prestige Financial Services, Inc. has completed its fourth term securitization transaction, issuing $105,000,000 in bonds backed by sub prime automobile installment receivables. Underwritten by Banc One Capital Markets and J.P. Morgan Securities, Inc., the bonds were purchased by qualified institutional buyers in a private offering pursuant to Rule 144A under the Securities Act.
The bonds were rated Aaa/AAA by Moody’s Investors Services and Standard & Poor’s based on several factors, including Prestige’s ability as an originator and servicer, and the financial guaranty insurance policy provided by Financial Security Assurance Corporation.

"The transaction generated strong investor interest during a period of great volatility," remarks Lisa Krumholz, an Associate at JPMorgan. "Given the strong performance of the managed portfolio, Prestige was able to achieve its most favorable transaction terms to date." Mark Castiglione, Managing Director of Consumer Finance for Financial Security Assurance, notes that his firm "continues to be impressed" with Prestige's management and overall business model.

Prestige provides consumer financing solutions for over 150 automobile dealerships throughout the western United States. Founded in 1994 to serve primarily as an in-house financing service for credit-challenged customers of Larry H. Miller Dealerships, Prestige now employs more than 150 credit professionals and support staff to service a wide range of borrower types, and is recognized throughout the industry for its innovative lending programs.

“Each securitization enhances our ability to buy paper in our target niches,” observes Prestige COO Robert Avery. “This transaction will allow us to increase revenues and profits as we enter a phase of regional expansion, the first significant step of which was our entry this spring into the Texas market. This growth, in turn, will allow us to securitize more frequently.”
All bonds included in this securitization having been sold, this announcement of their sale appears as a matter of record only.

Prestige Financial Services, Inc. has completed its fourth term securitization transaction, issuing $105,000,000 in bonds backed by sub prime automobile installment receivables. Underwritten by Banc One Capital Markets and J.P. Morgan Securities, Inc., the bonds were purchased by qualified institutional buyers in a private offering pursuant to Rule 144A under the Securities Act. The bonds were rated Aaa/AAA by Moody's Investors Services and Standard & Poor's based on several factors, including Prestige's ability as an originator and servicer, and the financial guaranty insurance policy provided by Financial Security Assurance Corporation. "The transaction generated strong investor interest during a period of great volatility," remarks Lisa Krumholz, an Associate at JPMorgan. "Given the strong performance of the managed portfolio, Prestige was able to achieve its most favorable transaction terms to date." Mark Castiglione, Managing Director of Consumer Finance for Financial Security Assurance, notes that his firm "continues to be impressed" with Prestige's management and overall business model. Prestige provides consumer financing solutions for over 150 automobile dealerships throughout the western United States. Founded in 1994 to serve primarily as an in-house financing service for credit-challenged customers of Larry H. Miller Dealerships, Prestige now employs more than 150 credit professionals and support staff to service a wide range of borrower types, and is recognized throughout the industry for its innovative lending programs. "Each securitization enhances our ability to buy paper in our target niches," observes Prestige COO Robert Avery. "This transaction will allow us to increase revenues and profits as we enter a phase of regional expansion, the first significant step of which was our entry this spring into the Texas market. This growth, in turn, will allow us to securitize more frequently." All bonds included in this securitization having been sold, this announcement of their sale appears as a matter of record only.