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CPS Announces $240.0 Million Senior Subordinate Asset-Backed Securitization
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LAS VEGAS, Nevada, April 28, 2021 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the closing of its second term securitization in 2021. The transaction is CPS's 39th senior subordinate securitization since the beginning of 2011 and the 22nd consecutive securitization to receive a triple “A” rating from at least two rating agencies on the senior class of notes.
In the transaction, qualified institutional buyers purchased $240.0 million of asset-backed notes secured by $240.0 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2021-B, consist of five classes. Ratings of the notes were provided by Moody’s and DBRS Morningstar, and were based on the structure of the transaction, the historical performance of similar receivables and CPS’s experience as a servicer.
Note Class
Amount
(in millions)
Interest Rate
Average Life (years)
Price
Moody’s Rating
DBRS Rating
A
$125.640
0.37
%
0.70
99.99532
%
Aaa
AAA
B
$30.000
0.81
%
1.90
99.99506
%
Aa1
AA
C
$36.360
1.23
%
2.57
99.99538
%
A2
A
D
$18.000
1.52
%
3.26
99.99314
%
Baa3
BBB
E
$30.000
3.41
%
3.96
99.98304
%
NR
BB
The weighted average coupon on the notes is approximately 1.65%.
The 2021-B transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 7.00% of the original receivable pool balance, or 26.00% of the then outstanding pool balance.
The transaction utilizes a pre-funding structure, in which CPS sold approximately $155.5 million of receivables at inception and plans to sell approximately $84.5 million of additional receivables in May 2021. This further sale is intended to provide CPS with long-term financing for receivables purchased pri
consumer portfolio services is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems, low incomes or limited credit histories. we purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. we fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives. our operational headquarters are located in irvine, california and we have four additional strategically located servicing branches in florida, illinois, nevada and virginia. since we began operations in 1991 and through june 2015, we have purchased over $11.8 billion in contracts. we currently service a total managed portfolio of approximately $1.8 billion with approximately 140,000 customers and 900 employees. we maintain dealer relationships in 48 states across the united states.
