AmeriCredit, an independent automobile finance company, has entered into a one-year, $2 billion forward purchase commitment agreement with Deutsche Bank.
Under the agreement and subject to certain terms, Deutsche will purchase asset-backed securities in registered public offerings on the company’s subprime AmeriCredit Automobile Receivables Trust securitization platform. In connection with this agreement, AmeriCredit has issued to an affiliate of Deutsche warrants to purchase 7.5 million shares of the company’s common stock.
AmeriCredit has announced that it will use the net proceeds from securitization transactions to provide long-term financing of its receivables.
Dan Berce, president and CEO of AmeriCredit, said: This agreement is a positive step in our pursuit of securitization opportunities in this challenging capital markets environment