Exeter Finance secures multi-year forward flow agreement

Exeter Finance LLC, a leading indirect auto finance company, recently completed a multi-year forward flow agreement with Canada Pension Plan Investment Board through an affiliate of its wholly owned subsidiary CPPIB Credit Investments Inc. (“CPP Investments”), to sell up to $200 million of residual certificates per annum, beginning in 2023, to CPP Investments.

Through the agreement, CPP Investments will purchase a portion of residual cash flows from securitized auto loan receivables after the assets meet specific aging and performance requirements. Proceeds from the sale of the residuals may be used to fund new growth initiatives, originate new auto loan receivables, pay down company warehouse facilities, or for general corporate expenditures.

Jason Grubb, CEO of Exeter Finance, stated, “We’re excited to announce the execution of a multi-year forward flow agreement with CPP Investments to sell residuals from our securitization transactions. This transaction supports Exeter’s strategic growth initiatives and is in line with our team’s continued efforts to diversify our funding sources. It is also a product of the demand for and quality of Exeter-originated assets and complements our AAA-rated public shelf and strong capital support from our investor base.”