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Flagship Credit Acceptance Completes $400 Million Asset-Backed Securitization

May 05 2016 | Chadds Ford, PA

CHADDS FORD, PA May 5, 2016 – 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 CarFinance.com, 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.

About Flagship Credit Acceptance

Flagship Credit Acceptance LLC ("Flagship"), headquartered in Chadds Ford, Pennsylvania with offices in Irving, Texas, Phoenix, Arizona, Irvine, California and Indianapolis, Indiana, helps credit-challenged auto shoppers secure financing through partnerships with primarily franchised auto dealers and through its direct lending site, CarFinance.com. Flagship Credit has successfully grown its portfolio to $2.9 billion in managed receivables. The Company currently purchases indirect auto contracts from a nationwide network of over 9,400 dealers and originates direct to consumers in 46 states.

Fair Lending Policy

Flagship Credit Acceptance, LLC ("Flagship") is committed to maintaining a culture of fair credit throughout the organization. In this regard, Flagship has developed a Fair Credit Program ("Program") that complies with all applicable fair credit laws and regulations ("FC Laws") and reflects industry best practices. Flagship is committed to comply with the letter and spirit of FC Laws. The goal of the Program is to carry out Flagship's commitment and be recognized internally and externally (e.g., by management, associates, customers, service providers, and the public) as dedicated to fair credit principles and demanding of compliance. The Program applies to all aspects of Flagship's operations (including reviewing, purchasing and servicing retail installment sale contracts whether for itself or others) and all services offered by Flagship, and across all of Flagship's credit operations, including marketing, underwriting, origination, processing, servicing, collection, loss mitigation, and payoff activities, and to all personnel who work for or on behalf of Flagship, whether as associates, officers, members of the Board of Directors, agents, representatives or service providers.

Should you have any questions about the details of any of Flagship's policies, please contact us at 1.800.707.0114 M-F, between 9:00 a.m. and 5:00 p.m. EST.

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Our Lending Philosophy

A borrower is more than just a credit score. At Flagship, we focus on the story behind the customer …and look beyond the number.

Life happens. Whether low credit scores are a result of past circumstances, one-time events or just bad luck, Flagship offers multi-tiered pricing structures to finance borrowers across the credit spectrum.

At Flagship we believe a borrower’s credit past shouldn’t dictate their future.

Many borrowers need a second chance. We recognize the vast majority of persons with credit challenges are working hard to re-establish their credit rating. Each of our Credit Analysts are trained in "common sense" lending, a philosophy of reviewing all the circumstances and determining the appropriate deal structure for the specific borrower situation. Flagship maintains a very high standard regarding  Fair Lending compliance, ensuring our customers are always treated professionally and consistently.

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