CPS Announces $418.33 Million Senior Subordinate Asset-Backed Securitization

Rhea-AI Summary

Consumer Portfolio Services (Nasdaq: CPSS) has successfully closed its third term securitization of 2025, marking its 56th senior subordinate securitization since 2011. The transaction involved $418.33 million of asset-backed notes secured by $433.50 million in automobile receivables.

The securitization, issued through CPS Auto Receivables Trust 2025-C, consists of five note classes with ratings from Standard & Poor's and DBRS Morningstar. The weighted average coupon is 5.43%, with initial credit enhancement including a 1.00% cash deposit and 3.50% overcollateralization of the original receivable pool balance.

Positive

• 39th consecutive securitization to receive triple 'A' rating from at least two rating agencies on senior class notes
• Strong credit enhancement structure with 1.00% cash deposit and 3.50% overcollateralization
• Successful placement of $418.33M in asset-backed notes, demonstrating continued market access

Negative

• Higher interest rates across note classes, with weighted average coupon of 5.43%

Insights

Structured Finance Specialist

CPS completed a $418.33M securitization with favorable AAA ratings, demonstrating continued market access and investor confidence.

Consumer Portfolio Services (CPS) has successfully closed its third asset-backed securitization of 2025, raising $418.33 million against a $433.50 million pool of auto receivables. This transaction represents CPS's 56th securitization since 2011 and notably marks their 39th consecutive deal receiving AAA ratings from multiple agencies, indicating strong structural quality and performance history.

The transaction's weighted average interest rate of 5.43% appears reasonable in the current market environment. The deal's structure includes five tranches with progressively higher yields for riskier classes, ranging from 4.71% for the AAA-rated senior notes to 6.59% for the lowest-rated tranche.

From a credit enhancement perspective, the deal includes a 1.00% cash deposit and 3.50% initial overcollateralization, with built-in mechanisms to accelerate principal payments to reach 8.00% overcollateralization (or 21.00% of the outstanding pool). These features provide meaningful protection for senior noteholders while still allowing CPS to optimize its funding costs.

For investors, this securitization demonstrates CPS's continued access to capital markets and ability to convert illiquid auto loan receivables into immediate cash flow. The company's ability to achieve its 39th consecutive AAA-rated senior tranche suggests strong performance history and structural consistency, key indicators of operational stability in the specialty finance sector.

LAS VEGAS, Nevada, July 28, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) announced the closing of its third term securitization in 2025 on Monday July 28, 2025. The transaction is CPS's 56th senior subordinate securitization since the beginning of 2011 and the 39th 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 $418.33 million of asset-backed notes secured by $433.50 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2025-C, 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 Life (years)	Price	S&P’s Rating	DBRS Rating
A	$184.450		4.71%	0.63	99.99986%	AAA	AAA
B	$57.440		4.71%	1.66	99.99155%	AA	AA
C	$72.390		4.91%	2.35	99.98829%	A	A
D	$47.690		5.28%	3.21	99.97840%	BBB	BBB
E	$56.360		6.59%	4.02	99.97684%	NR	BB

The weighted average coupon on the notes is approximately 5.43%.

The 2025-C transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.50%. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 8.00% of the original receivable pool balance, or 21.00% 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 primarily through the securitization markets and service the contracts over their lives.

Investor Relations Contact

Danny Bharwani, Chief Financial Officer
949-753-6811

FAQ

What is the size of CPS's latest securitization in 2025?

Consumer Portfolio Services' latest securitization (2025-C) is $418.33 million in asset-backed notes, secured by $433.50 million in automobile receivables.

What are the credit ratings for CPSS's 2025-C securitization notes?

The notes received ratings ranging from AAA to BBB from S&P and DBRS Morningstar for classes A through D, while class E received a BB rating from DBRS only.

What is the weighted average coupon rate for CPSS's 2025-C securitization?

The weighted average coupon rate on the notes is 5.43%, with individual note class rates ranging from 4.71% to 6.59%.

What is the credit enhancement structure for CPSS's 2025-C securitization?

The initial credit enhancement consists of a 1.00% cash deposit of the original receivable pool balance and 3.50% overcollateralization, with provisions for accelerated principal payment to reach up to 8.00% overcollateralization.

How many securitizations has Consumer Portfolio Services completed since 2011?

This is CPS's 56th senior subordinate securitization since the beginning of 2011, and their third term securitization in 2025.