Tricolor Holdings
The responsible lender’s third issuance of the year and fifth overall, the social bond was 7.8x oversubscribed to help improve financial liquidity and expand financial inclusion for low-income and credit-insecure Hispanics. planned to be used for
DALLAS, Oct. 07, 2024 (Globe Newswire) — Tricolor today announced a $288 million social bond. This is the third time this year and the fifth overall. This is to empower underserved and low-income communities through improved access to affordable financing to meet critical transportation needs. and ultimately provide a path into mainstream finance.
Tricolor leverages a proprietary dataset of over 45 million unique attributes and leverages artificial intelligence (AI) across an integrated end-to-end model to address traditionally underserved We are an award-winning fintech innovator that creates a superior value proposition for our customers. By providing eligible people with access to reliable and affordable transportation, Tricolor brings them into the financial mainstream and helps reverse America’s systemic financial inequality. .
Tricolor, currently the third largest used retailer in Texas and California, completed three securitizations this year secured by loans totaling more than $1 billion. Investors can actively participate in Tricolor’s mission through the success of these issuances.
“A key element of our strategy has always been to invest ahead of growth and ensure we deliver on our value proposition as we scale,” said Daniel Chu, founder and CEO of Tricolor. states. “Over the past two years, this has included building a robust infrastructure, including approximately 500,000 square feet of new state-of-the-art remanufacturing capacity, to deliver on our brand promise of superior vehicle quality. Our focus on managing our capital has been a key driver of our consistent and predictable performance in the ABS market despite unprecedented macroeconomic fluctuations, and our focus on managing our capital since our first trade this year Costs improved by more than 200 basis points.
The Tricolor Social Bond is backed by a loan that provides affordable access to financing a car purchase for low-income borrowers without a FICO score. Tricolor received a Second Party Opinion (“SPO”) from S&P Global Ratings to provide an opinion on the social benefits of this framework and its alignment with the International Capital Markets Association (ICMA) Social Bond Principles. Obtained.
JP Morgan acted as lead structuring agent, Barclays acted as co-bookrunner and Fifth Third Securities acted as co-manager. Class A, Class B, Class C, Class D, Class E, and Class F are rated by Kroll Bond Rating Agency and Moody’s and placed with diversified institutional investors in a private placement pursuant to Rule 144A under the Securities Act. Revised version of 1933.
Tricolor has currently completed 14 successful ABS transactions and is the only issuer to be certified by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI) for all subprime automotive ABS. The Company executed its first securitization in July 2013.
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Addressing the needs of underserved Hispanic populations
Together, the more than 59 million Hispanics living in the United States make it the fifth largest economy in the world. However, 32% of the U.S. Hispanic population has no or limited access to mainstream credit, according to the FDIC’s National Survey of Unbanked and Underbanked Households.
Tricolor leverages AI, over 17 years of unique customer insights, and over 45 million unique non-traditional credit attributes to help lower-income and credit-invisible populations left behind by mainstream financial providers. Developing economically inclusive opportunities for Hispanics. Tricolor, a U.S. Department of Treasury-recognized community development financial institution (CDFI), has a history of empowering underserved Hispanic populations and creating a better physical and physical future. As part of our mission to provide roads, we’ve made nearly $4 billion in affordable auto loans. Mobility and upward financial mobility.
Tricolor is regularly recognized for its important work supporting consumers, including being named one of Inc. Magazine’s Best in Business and winning the Excellence in Financial Inclusion award at both the Finovate Awards and LendIt Fintech Industry Awards. has been evaluated.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, and does not constitute an offer to sell or the solicitation of an offer to buy in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws. , no sale of these securities shall be made. of such jurisdiction.
For more information about Tricolor, visit tricolorholdings.com and tricolor.com.
About tricolor
Tricolor is a U.S. Treasury-certified community development financial institution (CDFI) that leverages a direct-to-consumer, AI-powered platform to provide transportation and access to underserved Hispanic populations in the United States. We are a mission-driven company that provides solutions to improve financial mobility. . Leveraging advanced data analytics and technology to advance financial inclusion in underserved markets and provide responsible, affordable credit building for individuals with no or limited credit history. We offer car loans.
Tricolor and its affiliate Ganas Auto Group, headquartered in Dallas, Texas, currently ranks as the No. 3 used retailer in Texas and California, and is currently ranked as the No. 3 used retailer in Texas, California, Nevada, and Arizona. , operates 56 retail centers across 20 markets in New Mexico and Illinois. Shared Services Center in Guadalajara, Mexico. In total, Tricolor and Ganas have made approximately $4 billion in affordable auto loans using a proprietary model that disaggregates risk.
contact address
Stephanie Hicks
Tricolor Cosmo PR
(805) 295-9455
stephanie@cosmo-pr.com
