CPS Announces $65.0 Million Securitization of Residual Interests

Rhea-AI Summary

Consumer Portfolio Services (CPSS) has successfully closed a $65.0 million securitization of residual interests from previous securitizations. The transaction involves a qualified institutional buyer purchasing asset-backed notes secured by an 80% interest in a CPS majority owned affiliate that owns residual interests in five CPS securitizations issued from October 2023 through September 2024.

The majority owned affiliate interest encompasses 80% of the amounts in underlying spread accounts and 80% of the over-collateralization for each related securitization. Monthly payments will include interest at the coupon rate and potential principal payments to maintain a specified minimum collateral ratio. The transaction was executed as a private offering of securities, not registered under the Securities Act of 1933 or state securities laws.

Positive

• Secured $65.0 million in new financing through securitization
• Leverages existing residual interests to generate additional capital
• Maintains 20% interest in the securitized assets

Negative

• Reduces future cash flow potential from existing securitizations by selling 80% interest

LAS VEGAS, Nevada, March 20, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the closing of a $65.0 million securitization of residual interests from previously issued securitizations.

In the transaction, a qualified institutional buyer purchased $65.0 million of asset-backed notes secured by an 80% interest in a CPS majority owned affiliate (“MOA”) that owns the residual interests in five CPS securitizations issued from October 2023 through September 2024.

The MOA interest includes 80% of the amounts on deposit in the underlying spread accounts for each related securitization and 80% of the over-collateralization of each related securitization, which is the difference between the outstanding principal balance of the related receivables less the outstanding principal balance of the notes associated with the securitization. On each monthly payment date, the notes will be paid interest at the coupon rate and, if necessary, a principal payment necessary to maintain a specified minimum collateral ratio.

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 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, EVP/ Chief Financial Officer
949-753-6811

FAQ

What is the value and structure of CPSS's latest securitization deal?

CPSS closed a $65.0 million securitization backed by residual interests, with a qualified institutional buyer purchasing notes secured by an 80% interest in five previous securitizations from Oct 2023 to Sept 2024.

How will the payment structure work for CPSS's new securitization?

Monthly payments will include interest at the coupon rate and potential principal payments to maintain a specified minimum collateral ratio.

What assets are backing CPSS's $65 million securitization?

The securitization is backed by 80% interest in spread accounts and over-collateralization from five previous CPSS securitizations issued between October 2023 and September 2024.

Is CPSS's new $65 million securitization registered under the Securities Act?

No, the transaction was a private offering of securities not registered under the Securities Act of 1933 or state securities laws.