Tricolor Closes $217 Million Securitization to Empower Underserved Communities at Scale

Responsible lender’s latest issuance lowered its cost of capital by over 200 bps from a year ago

DALLAS, June 11, 2025 (GLOBE NEWSWIRE) -- Tricolor today announced a $217 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.

Barclays acted as the lead structuring agent with JPMorgan serving as Joint Bookrunner and Fifth Third Securities as Co-Manager. The Class A, Class B, Class C, Class D, Class E and Class F were rated by S&P and Kroll Bond Rating Agency 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 almost 60 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.

“We’re excited to complete our second securitization of the year,” explained Daniel Chu, founder and CEO of Tricolor. “Volatility has become the norm in the overall macro-economic environment, and we have conviction that our differentiated approach enables us to deliver consistent, predictable and positive outcomes. We’re also pleased to close our inaugural transaction with S&P as a rating agency as we continue to build a robust capital markets platform.”

Tricolor has now completed seventeen 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 60 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 almost 60 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 more than $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 65 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 more than $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

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