California Republic Bancorp (CRPB) recently sold $238 million of notes backed by prime auto loans to qualified institutional buyers.
The third best performing bank in the U.S. also sold all the residual interests of the securitized loans by selling “the underlying ownership certificates of the securitization trust through a private placement transaction.” CRPB will still service the underlying receivables for a 1% servicing fee.
CRPB Chief Executive Officer Jon Wilcox said, “Securitizations are an important aspect of our business model, and we are pleased by the size and overall execution of this deal.”
CRPB, which has $653 million total assets in the first quarter of this year, completed securitization of some $183 million of auto loans in November 2012.
Credit Suisse and Mitchell Silberberg & Knupp were the company’s structuring agent and bookrunner and legal adviser, respectively.