CPS Announces $416.82 Million Senior Subordinate Asset-Backed Securitization
Consumer Portfolio Services (CPSS) has closed its fourth term securitization of 2024, totaling $416.82 million in asset-backed notes secured by $436.00 million in automobile receivables.
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Rhea-AI Summary
Consumer Portfolio Services (CPSS) has closed its fourth term securitization of 2024, totaling $416.82 million in asset-backed notes secured by $436.00 million in automobile receivables. This marks the company's 53rd senior subordinate securitization since 2011 and the 36th consecutive to receive a triple 'A' rating from at least two rating agencies on the senior class of notes.
The transaction, CPS Auto Receivables Trust 2024-D, consists of five note classes with varying interest rates and average lives. The weighted average coupon on the notes is approximately 5.52%. Initial credit enhancement includes a 1.00% cash deposit and 4.40% overcollateralization. The deal utilizes a pre-funding structure, with CPS selling $298.42 million of receivables at inception and planning to sell an additional $137.58 million in October 2024.
Positive
- Successful closing of fourth term securitization in 2024, totaling $416.82 million
- 36th consecutive securitization to receive triple 'A' rating on senior class notes
- Pre-funding structure allows for additional $137.58 million in receivables to be sold in October 2024
- Initial credit enhancement with 1.00% cash deposit and 4.40% overcollateralization
Negative
- None.
Details
News Market Reaction – CPSS
The recorded move for CPSS in the trading session of this news was -1.84%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
LAS VEGAS, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) announced the closing of its fourth term securitization in 2024 on Tuesday, September 17, 2024. The transaction is CPS's 53rd senior subordinate securitization since the beginning of 2011 and the 36th 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 | 0.71 | AAA | AAA | ||||
| B | 1.75 | AA | AA | ||||
| C | 2.43 | A | A | ||||
| D | 3.29 | BBB | BBB | ||||
| E | 4.13 | NR | BB | ||||
The weighted average coupon on the notes is approximately
The 2024-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 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 primarily through the securitization markets and service the contracts over their lives.
Investor Relations Contact
Danny Bharwani, Chief Financial Officer
949-753-6811
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