Prestige Financial establishes $150 million conduit facility with J.P. Morgan

(Sept. 24, 2010) Prestige Financial Services, Inc. announced today that it has established a $150 million asset-backed commercial paper conduit facility through JPMorgan Chase Bank, N.A. in Chicago. The new arrangement, which has a renewable one-year term, provides a substantial and committed source of liquidity to fund the Salt Lake City-based auto finance company's consumer lending activities.

In some ways similar to a secured line of credit from a bank, a conduit facility aggregates installment receivables which, in turn, back short-term commercial paper sold to institutional investors. This funding source allows lenders to methodically build their portfolios toward the higher volumes required for asset-backed securitization, a longer-term arrangement through which large pools of receivables are financed in bulk through the capital markets.

“The competitive structure and outstanding pricing we achieved on this transaction owe to several factors,” observes Prestige's Chief Operating Officer, Bryant Henrie. “Foremost among them are the valued, long-standing relationship between J.P. Morgan and Prestige's parent, the Larry H. Miller Group of Companies, as well as our proven track record in originating and servicing sub-prime auto loans.”

Now in its seventeenth year of operations, Prestige Financial provides consumer financing solutions for automobile dealerships both within and outside of the Miller Group, the nation's tenth-largest auto retailer. Prestige manages a $440 million portfolio and is recognized throughout the industry for its innovative lending programs and strong portfolio performance.

This announcement appears as a matter of record only, and does not constitute an offer to sell or a solicitation of an offer to buy any security.


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