Texas-headquartered Arra Finance, a subprime auto finance company, has acquired the auto finance division of US-based Crescent Bank and increased its funding capital sources.
The deal, announced today, was closed on 15 September, and will allow Arra to service Crescent Bank’s $770m (£573.8m) auto loan portfolio, in addition to Arra’s own loans.
The acquisition also significantly increases Arra’s auto finance origination capacity.
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“Arra is set to advance the subprime auto financing market,” said Kenn Wardle, Arra’s chief executive. “We have built a platform tailor-made to meet dealer needs, with near immediate credit application response times and a strong financing pipeline.”
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Additionally, the company signed a multi-year forward flow agreement with Obra Capital and secured access to a credit warehouse facility with Goldman Sachs.
“In preparation for our entry into the asset-backed securities market, we have enhanced the scalability of our platform, improving our ability to meet dealer needs with diversified, reliable capital sources,” said Steven Lackowski, Arra’s chief financial officer.
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