ALM First, a strategic partner for depositories offering commission-free, fee-based advice, served as a consultant for Space Coast Credit Union, the third-largest credit union in Florida with over $9B in assets, throughout their recent auto loan securitization process.
This is the Credit Union’s first asset-backed securities issuance. The deal, which closed last week and is listed as SCCU Auto Receivables Trust 2023-1 (SCCU 2023-1), got upsized to $422.25M and its average spread tightened in to 112.6 basis points.
This is the eleventh public securitization to be completed in the entire industry since the NCUA’s June 2017 Opinion Letter affirming credit unions could conduct securitizations. It marks the fifth time ALM First has served as an advisor on such a transaction, and the seventh securitization the firm has assisted with from a capital markets perspective.
“In our role as a trusted advisor, we help credit unions gain access to a broader investor market and profitably access liquidity,” says Travis Goodman, Principal of ALM First. “In half of all industry securitizations to date, our team has helped credit unions strategically navigate the process, provided insights regarding where to price new loans for sale and executed strategies to lock in margin.”
“At Space Coast Credit Union, we prioritize our members and their financial needs with every decision and partnership we make,” said Timothy M Antonition, CEO of Space Coast Credit Union. “This securitization will benefit our members and our community by allowing us to continue offering affordable financing options for current and future members.”