CPS Announces $419.95 Million Senior Subordinate Asset-Backed Securitization
Consumer Portfolio Services (NASDAQ: CPSS) has successfully closed its second term securitization of 2025, marking its 55th senior subordinate securitization since 2011.
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Rhea-AI Summary
Consumer Portfolio Services (NASDAQ: CPSS) has successfully closed its second term securitization of 2025, marking its 55th senior subordinate securitization since 2011. The transaction involved $419.95 million of asset-backed notes secured by $439.29 million in automobile receivables. The notes were issued through CPS Auto Receivables Trust 2025-B in five classes, with the senior class receiving triple "A" ratings from both Standard & Poor's and DBRS Morningstar.
The notes carry a weighted average coupon of 5.96% and feature initial credit enhancement including a 1.00% cash deposit and 4.40% overcollateralization. The transaction requires accelerated principal payments to achieve overcollateralization of either 8.65% of the original receivable pool balance or 22.00% of the outstanding pool balance, whichever is lesser.
Positive
- Achieved triple 'A' rating from two agencies for the senior class of notes, marking the 38th consecutive securitization with this achievement
- Strong credit enhancement structure with 1.00% cash deposit and 4.40% initial overcollateralization
- Successful placement of $419.95 million in asset-backed notes, demonstrating continued market access
Negative
- Relatively high weighted average coupon rate of 5.96% indicates increased borrowing costs
- Exposure to credit risk from borrowers with past credit problems or limited credit histories
Details
News Market Reaction – CPSS
The recorded move for CPSS in the trading session of this news was +2.67%.
Data tracked by StockTitan Argus. Session date unavailable.
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LAS VEGAS, Nevada, May 12, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) announced the closing of its second term securitization in 2025 on Monday May 12, 2025. The transaction is CPS's 55th senior subordinate securitization since the beginning of 2011 and the 38th 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 | 1.75 | AA | AA | ||||||
| C | 2.43 | A | A | ||||||
| D | 3.23 | BBB | BBB | ||||||
| E | 3.98 | NR | BB | ||||||
The weighted average coupon on the notes is approximately
The 2025-B 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 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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