CPS Announces $349.2 Million Senior Subordinate Asset-Backed Securitization
Consumer Portfolio Services (CPSS) has successfully closed its fourth term securitization in 2021, marking its 41st since 2011.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Consumer Portfolio Services (CPSS) has successfully closed its fourth term securitization in 2021, marking its 41st since 2011. The transaction involved the sale of $349.2 million in asset-backed notes backed by $360.0 million of automobile receivables. All notes received a triple 'A' rating from Moody's and DBRS Morningstar. The weighted average coupon on the notes is approximately 2.09%, and the transaction features initial credit enhancements of 4.00%. A pre-funding structure allows for the sale of additional receivables, facilitating long-term financing.
Positive
- Successful closing of fourth term securitization in 2021.
- Total of $349.2 million in asset-backed notes sold, backed by $360.0 million in receivables.
- Notes received triple 'A' ratings from two major agencies.
- Weighted average coupon at approximately 2.09%, indicating favorable borrowing costs.
- Initial credit enhancement of 4.00% supports transaction stability.
Negative
- None.
AI-generated analysis. How Rhea-AI works. Not financial advice.
LAS VEGAS, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the closing of its fourth term securitization in 2021. The transaction is CPS's 41st senior subordinate securitization since the beginning of 2011 and the 24th 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 | Moody’s Rating | DBRS Rating | |
| A | 0.72 | Aaa | AAA | ||||
| B | 1.94 | Aa1 | AA | ||||
| C | 2.52 | A1 | A | ||||
| D | 3.27 | Baa3 | BBB | ||||
| E | 3.99 | NR | BB | ||||
The weighted average coupon on the notes is approximately
The 2021-D transaction has initial credit enhancement consisting of a cash deposit equal to
The transaction utilizes a pre-funding structure, in which CPS sold approximately
The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law. All of 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, 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 through the securitization markets and service the loans over their entire contract terms.
Investor Relations Contact
Jeffrey P. Fritz, Chief Financial Officer
844-878-CPSS (844-878-2777)
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.