Santander Consumer USA eyes at least $50 million from IPO

Article by Anita Panait, on July 8, 2013

Santander Consumer USA is planning to raise at least $50 million in an initial public offering, according to filings with the United States Securities and Exchange Commission. The lender, which is the company behind Chrysler Capital, also intends to pursue relationships with other carmakers. Santander Consumer USA said in the filings that it intends to expand its existing OEM relationships and “develop future relationships with other OEMs to drive incremental origination volume."

The company historically has been a subprime and near-prime lender that specializes in used-vehicle financing.  The lender’s auto lending practices, however, have changed since it inked a ten-year deal in February 2013 with Chrysler Group LLC to originate private-label loans and leases under the Chrysler Capital brand. Chrysler Capital commenced operations on May 1, 2013 in the US as the quasi-captive finance arm of Chrysler. New vehicles accounted for around 40 percent of Santander Consumer originations in May 2013, up from an average of between 10 percent and 20 percent.

According to Santander Consumer USA, it acquired over $900 million of Chrysler Capital loans, $200 million in Chrysler Capital leases, and around $9 million in Chrysler Capital wholesale loans to dealers in May 2013. Santander Consumer USA said it expects most of its growth to come from the Chrysler relationship in the short term. The lender purchases auto loans from around 14,000 dealers in the US, covering all brands. Santander Consumer USA’s direct-to-consumer auto loans have also become a profitable business for the company.

Dallas-based Santander Consumer USA is 65-percent owned by Banco Santander. Private equity funds affiliated with Warburg Pincus LLC, Kohlberg Kravis Roberts & Co. L.P., and Centerbridge Partners L.P. controls 25 percent of Santander Consumer USA. Santander Consumer USA chief executive Thomas Dundon owns around 10 percent of the company. [source: automotive news - sub. required]

Topics: ipo

If you liked the article, share on:

Pin It

Comments

Recommended

To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries