CPS Announces Closing of $167.5 Million Credit Facility

Rhea-AI Summary

Consumer Portfolio Services (Nasdaq: CPSS) closed a $167.5 million two-year revolving credit facility on October 17, 2025. Loans under the agreement are secured by automobile receivables CPS holds or will acquire from dealers, and the facility includes a subordinate lender that provides a higher effective advance rate.

CPS may borrow on a revolving basis through October 2027, after which it can repay outstanding loans in full or allow them to amortize over an 18-month period. The company warned that defaults or events of default could terminate the revolving period or accelerate maturity, citing potential losses from receivables performance, higher consumer bankruptcies, regulatory changes, or adverse economic conditions.

Positive

• $167.5M revolving credit facility closed
• Facility secured by automobile receivables held or acquired
• Subordinate lender provides a higher effective advance rate
• Revolving borrowing available through Oct 2027

Negative

• Revolving period may terminate on certain defaults or events of default
• Outstanding loans could accelerate or require amortization over 18 months
• Company exposed to losses from poor receivables performance
• Risk from increased consumer bankruptcy filings, regulatory changes, or adverse economic conditions

LAS VEGAS, Nevada, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced that on October 17, 2025, it closed a new two-year revolving credit agreement.

Loans under the credit agreement will be secured by automobile receivables that CPS now holds or will purchase from dealers in the future. The credit facility includes a subordinate lender that will provide a higher effective advance rate for the facility. CPS may borrow on a revolving basis through October 2027, after which CPS will have the option to repay the outstanding loans in full or to allow them to amortize for an 18-month period.

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 through the securitization markets and service the contracts over their lives.

Forward-looking statements in this news release include the Company's expectation that the revolving period will extend for two years, and that an amortization period may follow. The revolving credit agreement closed on October 17, 2025, provides for both a revolving period and an amortization period to follow, but it is possible that the Company may suffer certain defaults or events of default that would terminate the revolving period or result in acceleration of maturity of the credit extended. In general, such defaults or events of default would result from losses that the Company might incur in the future. In turn, such losses might result from poor performance of receivables acquired or to be acquired by the Company, from increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; from changes in government regulations affecting consumer credit; or from adverse economic conditions, either generally or in geographic areas in which the Company's business is concentrated.

Investor Relations Contact

Danny Bharwani, EVP/ Chief Financial Officer
949-753-6811

FAQ

What did CPSS announce on October 17, 2025 regarding financing?

CPSS closed a $167.5 million two-year revolving credit facility secured by automobile receivables.

How long can CPSS borrow under the new credit facility (CPSS)?

CPSS may borrow on a revolving basis through October 2027, with an option to repay or amortize over 18 months thereafter.

What collateral secures CPSS’s new $167.5M credit facility?

Loans are secured by automobile receivables CPS now holds or will purchase from dealers.

What role does the subordinate lender play in CPSS’s credit agreement?

A subordinate lender in the facility provides a higher effective advance rate for the credit line.

What risks did CPSS identify that could end the revolving period?

The company cited potential defaults from poor receivables performance, higher consumer bankruptcies, regulatory changes, or adverse economic conditions.