Westlake Announces New Credit Facility With Japanese Firm
LOS ANGELES--(BUSINESS WIRE)--Westlake Financial Services, a full-spectrum auto finance company, announces a new $30 million credit facility with MG Leasing Corporation (MGL), a Japanese leasing company. The credit facility collateralizes Westlake’s auto finance receivables. The agreement was executed on November 8, 2012 and funds today - November 26, 2012.
Paul Kerwin, Westlake’s Chief Operating Officer, made special note that MGL is the first Japanese finance company to partner with Westlake Financial Services. “We appreciate MGL’s very competitive pricing and strong confidence in our business plan,” Mr. Kerwin says. “We are honored to say this is MGL’s first financing deal inside the United States as well as Westlake’s first partnership with a Japanese finance firm. With this additional liquidity, Westlake is well positioned to expand and continue our record growth that we have been experiencing the past 25 years and into the future.”
“This transaction is meaningful because MGL is the first Japanese finance company to fully understand and appreciate Westlake's unique business model and the growing sub-prime market,” says Atsushi Suzuki, Westlake board member and Marubeni Corporation representative. “Westlake's funding structure has become even stronger compared to competitors by adding Japanese financing. I hope this opportunity will continue to grow, and bring even more Japanese financing to the U.S. sub-prime auto market.”
Ian Anderson, Westlake President, adds, “We are pleased to have such strong financial partners like Wells Fargo, RBS, JP Morgan and others, and diversifying our funding sources to include international finance companies is the key to stabilizing Westlake’s funding base and supporting our expanding portfolio of services.”
MGL is a joint venture of Marubeni Corporation (which acquired a 20% stake in Westlake Financial Services in July 2011) and Sumitomo Mitsui Finance and Leasing Company Ltd., a subsidiary of a top four global banking institution, Sumitomo Mitsui Financial Group.
About Westlake Financial Services: Westlake Financial Services is an internet based, privately held finance company that specializes in the acquisition and servicing of sub-prime to prime automotive retail installment contracts. Headquartered in Southern California, Westlake originates indirect retail installment contracts through a network of over 15,000 new and used car dealers throughout the United States. Westlake also offers portfolio purchasing through their ALPS division (Advanced Lending & Portfolio Services). Direct to consumer title loans and unsecured loans are done through Westlake’s wholly owned subsidiary, Wilshire Consumer Credit. All collections and servicing are performed in-house from its central facility located in the Mid-Wilshire area of Los Angeles.