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General Motors Financial Company Inc. announced the pricing of a $1 billion offering of automobile receivables-backed securities.
GM Financial uses net proceeds from securitization transactions for long-term financing of its receivables.
The 2013-1 transaction will have initial credit enhancement of 7.25 percent, consisting of a 2 percent cash deposit and 5.25 percent overcollateralization. Total required enhancement will build to 14.25 percent of the then-outstanding receivable pool balance, which includes the initial 2 percent cash deposit.