New record set: Porsche Financial Services, Inc. places $1.04 billion ABS
issuance in the USA
Porsche Financial Services, Inc., headquartered in Atlanta, Georgia, has issued Asset Backed Securities (ABS) in the USA with a principal amount of $1.04 billion. In a highly competitive environment, the issuance was warmly received by the markets.
Porsche Financial Services is an indirect, wholly owned subsidiary of German luxury car maker Dr. Ing. h.c. F. Porsche AG (“Porsche AG”).
The securities issued in the Rule 144A transaction received a “AAA” rating from the rating agencies, and in comparison to other issuers, achieved benchmark coupons and credit enhancement. The transaction, divided into four tranches with expected weighted average lives between four months and approximately three and a half years, was backed by a pool of retail instalment sales contracts financing Porsche vehicles.
Following the IPO of Porsche AG in September 2022 the company has successfully expanded its footprint into the capital markets. Porsche Financial Services, Inc. (PFS) has issued ABS offerings since 2011 in the USA. Looking to the future, PFS considers these transactions an important element of its financing strategy.
The transaction was supported by Wells Fargo, Bank of America, J.P. Morgan and Société Générale as book runners. The investors who purchased the ABS bonds included investments funds, asset managers of financial institutions, trusts, banks and corporates.
“To break our own record in such a competitive market is a pleasing result”, Tobias Hausladen, Treasurer & Chief Financial Officer, Porsche Financial Services, Inc., explained. “We experienced a strong demand for our bonds so we were able to upsize the transaction from initial $750 million to $1.04 billion, making this the biggest volume we have ever placed in the ABS market.”
About Porsche Financial Services, Inc. | One Porsche Drive, Atlanta, GA 30354 USA
Porsche Financial Services, Inc. (PFS), based in Atlanta, Georgia, is the dedicated provider of leasing and financing products for Porsche in the United States. Founded in 1991, PFS provides custom financial solutions and products to Porsche customers and dealers in the United States. In 2012, PFS expanded its North America operations to become the captive finance provider for the exclusive brands of the VW Group which include Bentley, Lamborghini, and Bugatti. As an integrated premium financial services provider, every new product – whether it be a leasing offer or a service offer – contains the DNA of some of the world’s most exclusive vehicle manufacturers.
About Porsche Cars North America, Inc. | One Porsche Drive, Atlanta, GA 30354 USA
Established in 1984, Porsche Cars North America, Inc. (PCNA) is the exclusive U.S. importer of the Porsche 911, 718 Boxster, 718 Cayman, Macan, Cayenne, Panamera and Taycan. Headquartered in Atlanta, Georgia, since 1998, PCNA is home to the first Porsche Experience Center in North America, which features two module-based 1.6 mile driver development tracks, a business center and Restaurant 356. The campus is also home to the U.S. headquarters of Porsche Classic. The company operates a second Porsche Experience Center near Los Angeles. That complex features a driver development track with eight educational modules totaling 4.1 miles, a business center, Restaurant 917 and the headquarter sof Porsche Motorsport North America. PCNA supports 197 independently owned and operated Porsche centers, two Porsche studios and three satellite stores in the U.S., including supplying parts, service, marketing, and training. They, in turn, work to provide Porsche customers with a best-in-class experience that is in keeping with the Porsche brand's 75-year history of leadership in the advancement of vehicle performance, safety, and efficiency. PCNA is an indirect wholly-owned subsidiary of Porsche AG, which is headquartered in Stuttgart, Germany.
At the core of this success is Porsche's proud racing heritage that boasts some 30,000-plus motorsport wins to date.
Photos and video footage are available to accredited journalists on the Porsche Press Database at press.porsche.com