WFS Financial to Sell Asset-Backed Securities

WFS Financial Inc. plans to sell about $1.5 billion in asset-backed securities, the Irvine finance company disclosed in a regulatory report.

The report, filed with the Securities and Exchange Commission, allows WFS to register the securities in advance and then sell them when market conditions are favorable or when financing needs arise. Terms of the securities are usually announced at the time of the sale.

The securities are backed by a pool of auto loans, the filing said. WFS Financial purchases fixed-rate consumer auto loans from new- and used-car dealers and then bundles the loans through underwritten public sales.

WFS Financial’s stock, which has fallen 19.5% since the beginning of the year, closed at $17, down 25 cents a share, in Nasdaq trading.