Irving-based Exeter Finance Corp, which specializes in subprime auto loans, says it plans to file to become a publicly traded company, according to multiplereports.
According to an SEC filing, Exeter will list on the New York Stock Exchange under the ticker symbol “XTF.” It is backed by the private equity firm Blackstone Group.
Exeter has 2.8 percent of the nation’s subprime auto loans and an approximate customer base of 276,000 in approximately 10,500 dealerships in 49 states, according to the filing,
Exeter specializes in loans to customers with subprime credit scores (Exeter defines that as scores 620 or below.) The company’s portfolio includes $4 million in loans.
According to the filing, Exeter has achieved substantial growth in profits with net income for the first nine months of 2018 at $57.4 million.
Exeter says it changed its strategy in 2016 when new management “completed a transition from a top-line, revenue-based strategy focused on increasing volume and market share to a strategy more focused on profitability. This involved focusing on profitable pricing and optimal contract terms utilizing our automated underwriting capabilities, as well as eliminating under-performing dealers and focusing more on partnership channels.”