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Americredit finds buyers for $750M in car loans

By Associated Press
May 20, 2008 | Comments (0)

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Americredit Corp. found buyers for $750 million in car loans to people with bad credit, the auto lender said Tuesday.

Americredit's business model is to issue car loans through dealers, then package the loans into bonds and sell the bonds to investors.

In a sale arranged by Deutsche Bank and Credit Suisse, with Barclays Capital, Lehman Brothers and Wachovia co-managing, Americredit found buyers for a bonds backed by $750 million in subprime auto loans. The bonds will pay an average interest rate of 6 percent annually.

The bonds will be insured by a bond insurer, Financial Security Assurance Inc.

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