CPS Announces $324.8 Million Senior Subordinate Asset-Backed Securitization
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) has successfully completed its first term securitization of 2023, marking its 46th senior subordinate securitization since 2011.
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Rhea-AI Summary
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) has successfully completed its first term securitization of 2023, marking its 46th senior subordinate securitization since 2011. This transaction involved the sale of $324.8 million in asset-backed notes, supported by $362.9 million in automobile receivables. Notably, this securitization received a triple “A” rating from at least two rating agencies for the senior class of notes. The weighted average coupon on the notes stands at approximately 6.82%, with initial credit enhancement comprising a cash deposit and overcollateralization. The offering was a private transaction, exempt from registration under securities laws.
Positive
- Successful closing of the first term securitization of 2023, improving liquidity.
- 39 consecutive securitizations receiving a triple “A” rating indicates strong creditworthiness.
- Sale of $324.8 million in asset-backed notes enhances financial stability.
Negative
- None.
Details
News Market Reaction – CPSS
The recorded move for CPSS in the trading session of this news was -4.08%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
LAS VEGAS, Nevada, Jan. 25, 2023 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the closing of its first term securitization in 2023. The transaction is CPS's 46th senior subordinate securitization since the beginning of 2011 and the 29th 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
| Note Class | Amount (in millions) | Interest Rate | Average Life (years) | Price | S&P’s Rating | DBRS Rating | |
| A | 0.65 | AAA | AAA | ||||
| B | 1.68 | AA | AA(H) | ||||
| C | 2.31 | A | A(H) | ||||
| D | 3.28 | BBB | BBB | ||||
| E | 4.03 | BB | BB(H) | ||||
The weighted average coupon on the notes is approximately
The 2023-A transaction has initial credit enhancement consisting of a cash deposit equal to
The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law. All such securities having been sold, this announcement of their sale appears as a matter of record only.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems 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 through the securitization markets and service the loans over their entire contract terms.
Investor Relations Contact
Danny Bharwani, Chief Financial Officer
949-753-6811
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