AUTO1 closes a consumer loan ABS
Used car trading company AUTO1 Group completed its first securitization backed by consumer loan assets (A…
Used car trading company AUTO1 Group has completed its first asset-backed securitization (ABS) of consumer loans.
Hogan Lovells provided legal advice to Citigroup as lead buyer of the bonds on the €150 million deal, which closed yesterday (April 6) and refinances car loans taken out by Autohero division customers of AUTO1.
Autohero is an online used vehicle trading portal that provides integrated car financing services to the German and Austrian markets.
The ABS structure initially refinances existing and future consumer credit agreements in Germany and Austria, with the possibility of entering new markets in the future, as the company intends to expand its presence.
AUTO1 Group Chief Financial Officer Markus Boser said in a statement: “Integrated and fully digital financing is a key growth driver for our Autohero business. This consumer loan ABS, alongside our recently announced increase in our ABS inventory, allows us to rapidly grow Autohero while reducing our cash investments.
Hogan Lovells brought in a team of finance practitioners Dietmar Helms and Sharon Lewis in Frankfurt and Paris, respectively, as well as fellow partners Heiko Gemmel in Dusseldorf on tax aspects and Robert Masman in Amsterdam on banking. and finance, as well as a number of lawyers. and associates.
Last month Travers Smith and Memery Crystal advised Auto Trader on the £200m acquisition of vehicle trading market Autorama.