(MENAFN- PR Newswire)
Securitization leveraged to further strengthen credit union through diversified funding, increased liquidity and net worth
TYSONS, Va., Aug. 29, 2024 /PRNewswire/ --
PenFed Credit Union , the nation's second-largest federal credit union, today announced the closing of its second prime auto loan securitization offering PenFed Auto Receivables Owner Trust 2024-A (PNFED 2024-A). The transaction issued $447,400,000 of fixed-rate, amortizing asset-backed notes backed by prime auto loans.
"PenFed is proud to announce our second auto loan securitization," said PenFed Credit Union President/CEO James Schenck. "This second securitization diversifies funding, increases liquidity and strengthens net worth."
The securitization is a private placement offering, which in
the United States
is offered only to qualified institutional buyers under Rule 144A. The asset-backed notes were offered in four senior and three subordinate tranches of notes and rated by S&P and Fitch.
"PenFed is pleased this auto loan securitization offering was very well received by the market," said PenFed Credit Union CFO and EVP,
Sarah Heintzman. "We plan to continue leveraging securitization as a tool to help us serve our members by diversifying liquidity and funding options."
PenFed has the second-largest consumer loan portfolio among all credit unions across auto, personal, student, consumer loans and credit cards. PenFed also possesses one of the largest auto loan portfolios among federal credit unions, with originations across all 50 states and
Puerto Rico. PNFED 2024-A introduced auto loans issued in Puerto Rico as part of the collateral pool for this transaction.
J.P. Morgan Securities LLC acted as the structuring lead
of the transaction and Mizuho Securities USA LLC, acted as joint lead with Roberts & Ryan, Inc as the co-manager on the transaction.
About PenFed Credit Union
Established in 1935, Pentagon Federal Credit Union (PenFed) is America's second-largest federal credit union, serving 2.9 million members worldwide with over
$33.5 billion
in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, and a wide range of other financial services with members' interests always in mind. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender.
To learn more about PenFed Credit Union, visit
PenFed , like us on
Facebook
and follow us @PenFed on
X . Interested in working for PenFed? Check us out on
LinkedIn . We are proud to be an Equal Employment Opportunity Employer.
SOURCE PenFed Credit Union
MENAFN29082024003732001241ID1108617238
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.