Irving Subprime Auto Lender Exeter Finance Prepares to Go Public

Exeter Finance Corp., an Irving-based auto lender that specializes in subprime loans, is filing to become a publicly traded company.Exeter, backed by private equity giant Blackstone Group, plans to list as XTF on the New York Stock Exchange, according to a regulatory filing this week with the U.S. Securities and Exchange Commission. Blackstone would remain the company's controlling shareholder after the IPO.The filing describes the subprime auto loan industry as fragmented, leading Exeter to believe it can gain a larger market share by going public. It cited an Experian report from September that indicated there are more than $400 billion in auto loans issued to consumers with credit scores below 660. Exeter held 2.8 percent of the nation's subprime auto loans at the end of September, with a customer base of 276,000. Texas borrowers represent 12 percent of its customers. The company works with 10,500 auto dealers across 49 states to finance loans for what it calls "underserved consumers" buying new and used cars.   Continue reading...

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