KBRA has assigned preliminary ratings to seven tranches across five classes of notes issued by Gls Auto Receivables Issuer Trust 2025-1 (GCAR 2025-1), a $666.54 million auto loan ABS transaction backed by subprime auto contracts. This marks the second term ABS securitization for Global Lending Services, LLC (GLS) in 2025 and the first under the GCAR program.
GLS, a prominent player in the gls auto finance market, has a robust history in securitization. Since its inaugural issuance in 2014, the company has successfully completed 30 securitizations under its GCAR program. This latest transaction, GCAR 2025-1, is collateralized by a pool of retail automobile contracts for both new and used vehicles, with obligors primarily in the subprime credit segment.
Founded in 2011, gls auto finance company GLS is majority-owned by funds managed by Sound Point Capital Management, L.P. (Sound Point), a well-established alternative asset manager. Sound Point and legacy funds previously managed by BlueMountain Capital Management have invested a significant $135 million in GLS since its inception.
As of December 31, 2024, GLS boasted impressive financials, with total assets of approximately $7.5 billion, loss absorbing capital of approximately $646.3 million, and a substantial managed portfolio balance of $7.7 billion. This strong financial foundation underscores GLS’s stability in the gls auto lending landscape.
KBRA’s preliminary ratings for GCAR 2025-1 were determined after a thorough analysis using its Auto Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology. The analysis encompassed a comprehensive review of the underlying collateral pool, the proposed capital structure, and GLS’s historical static pool data.
KBRA’s evaluation also incorporated an operational review of GLS, along with periodic due diligence calls. Furthermore, operative agreements and legal opinions will undergo a detailed review before the transaction closes. This rigorous assessment process ensures a comprehensive understanding of the risks and opportunities associated with the GCAR 2025-1 securitization.
For investors seeking detailed information on this gls auto backed securitization, KBRA provides comprehensive ratings and relevant documents on their website. A pre-sale report offering further insights into GCAR 2025-1 is also available for review. These resources offer valuable information for market participants interested in understanding the intricacies of this transaction.
