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(PRESS RELEASE) -- Prestige Financial Services, Inc. of Salt Lake City has recently arranged a $250 million asset-backed commercial paper warehouse financing facility through J. P. Morgan Securities. The conduit provides a substantial source of capital to fund Prestige's growing portfolio of consumer automobile loans, which will advance the company's development plans.
Structure and pricing both improved over Prestige's previous financing arrangements. Company executives attribute the favorable terms of this transaction, the largest of its kind in Prestige's twelve-year history, to outstanding asset quality and a proven track record in portfolio management.
Similar to a secured line of credit from a bank, a conduit facility comprises aggregated consumer auto loan receivables sold as commercial paper on the open market. This short-term funding source allows lenders to accelerate portfolio growth toward the higher volumes required for asset-backed securitization, a longer-term financing arrangement in which an entire portfolio may be sold through capital market sources.
