CPS Announces $324.8 Million Senior Subordinate Asset-Backed Securitization
01/25/2023 - 03:35 PM
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 $324.8 million of asset-backed notes secured by $362.9 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2023-A, consist of five classes. Ratings of the notes were provided by Standard & Poor’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 Price S&P’s DBRS A $154.582 5.54% 0.65 99.99610% AAA AAA B $44.080 5.47% 1.68 99.99354% AA AA(H) C $57.161 5.54% 2.31 99.98403% A A(H) D $39.553 6.44% 3.28 99.97740% BBB BBB E $29.392 10.59% 4.03 99.99588% BB BB(H)
The weighted average coupon on the notes is approximately 6.82% .
The 2023-A transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 10.50% . The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 14.00% of the original receivable pool balance, or 38.00% of the then outstanding pool balance.
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
Consumer Portfolio Service, Inc.
CPSS Rankings
#439 Ranked by Stock Gains
CPSS Stock Data
Industry
All Other Nondepository Credit Intermediation
Sector
Finance and Insurance
Tags
Finance, Finance/Rental/Leasing, Finance and Insurance, All Other Nondepository Credit Intermediation
About CPSS
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.
