DALLAS, March 12, 2025 (GLOBE NEWSWIRE) -- Tricolor today announced a $328 million issuance to empower underserved, low-income communities through improved access to affordable financing that meets their essential transportation needs and helps enable a path to mainstream financing.
JPMorgan acted as the lead structuring agent with Barclays serving as Joint Bookrunner and Fifth Third Securities as Co-Manager. The Class A, Class B, Class C, Class D, and Class E were rated by Kroll Bond Rating Agency and Moody’s and were placed with a diversified mix of institutional investors in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended.
Leveraging its proprietary dataset of over 50 million unique attributes, Tricolor is an award-winning fintech innovator that utilizes artificial intelligence (AI) across its integrated, end-to-end model to create a superior value proposition for historically underserved customers. By providing deserving people with access to reliable, affordable transportation, Tricolor, which operates across six states and ranks as the third largest used auto retailer in Texas and California, helps move them into the financial mainstream and reverse systemic financial inequities in America.
“Our approach is highly differentiated from most of the other issuers in sub-prime auto ABS because we operate a fully integrated retail and lending strategy,” explained Daniel Chu, founder and CEO of Tricolor. “Consequently, it requires time for ABS investors to digest our model and recognize that our strategy generates more consistent, predictable and favorable outcomes. We have tremendous conviction that our ability to deliver on our brand promise of superior vehicle quality and affordable financing results in compelling value for the consumer, a belief that has been validated by our capital markets’ execution.”
Tricolor has now completed sixteen well-received ABS transactions and is the only issuer in all of subprime auto ABS to be certified by the US Treasury as a Community Development Financial Institution (CDFI). The Company issued its first securitization in July 2013.
Meeting the Needs of Underserved Hispanics
The more than 59 million Hispanics in the United States would collectively rank as the fifth largest economy in the world. Yet, according to the FDIC National Survey of Unbanked and Underbanked Households, 32% of this US Hispanic population has no or limited access to mainstream credit.
Tricolor uses AI and over 17 years of proprietary customer insights along with over 50 million unique non-traditional credit attributes to unlock financially inclusive opportunities for low-income, credit invisible Hispanics left behind by mainstream financial providers. To date, Tricolor, a U.S. Department of the Treasury certified CDFI, has disbursed over $5 billion in affordable auto loans as part of its mission to empower underserved Hispanics and provide them a path to a better future through both physical and upward financial mobility.
Tricolor has been routinely recognized for its important work supporting consumers, including being named one of Inc. Magazine’s Best in Business and as the winner of Excellence in Financial Inclusion awards by both Finovate Awards and the LendIt Fintech Industry Awards.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
For more information about Tricolor, please visit tricolorholdings.com and tricolor.com.
About Tricolor
Tricolor is a U.S. Department of the Treasury certified Community Development Financial Institution (CDFI) and a mission-driven company that leverages its direct-to-consumer, A.I.-powered platform to provide transportation and upward financial mobility solutions for underserved Hispanics in the United States. It utilizes advanced data analytics and technology to advance financial inclusion to a highly underserved market and offer responsible, affordable, credit-building auto loans to individuals with no or limited credit history.
Headquartered in Dallas, Texas, Tricolor and its affiliate Ganas Auto Group, which now rank as the third largest used auto retailer in Texas and California, operate 63 retail centers across 22 markets in Texas, California, Nevada, Arizona, New Mexico, and Illinois with a shared services center in Guadalajara, Mexico. On a combined basis, Tricolor and Ganas have disbursed $5 billion in affordable auto loans using their proprietary model to segment risk.
CONTACT INFORMATION
Stephanie Hicks
Cosmo PR for Tricolor
(805) 295-9455
stephanie@cosmo-pr.com
