$50M CPS (NASDAQ: CPSS) residual interest securitization closes at 8.75%
Rhea-AI Filing Summary
Consumer Portfolio Services, Inc. completed a $50 million securitization of residual interests from previously issued auto loan securitizations. Qualified institutional buyers purchased $50 million of asset-backed notes bearing an 8.75% coupon, secured by an 80% interest in a majority-owned affiliate holding residual interests in four CPS deals issued from January 2025 through October 2025.
The collateral includes 80% of cash in underlying spread accounts and 80% of over-collateralization from the related securitizations. Noteholders will receive monthly interest and, when needed, principal payments designed to keep a specified minimum collateral ratio in place. The securities were sold via a private offering not registered under federal or state securities laws.
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Insights
CPS monetizes $50 million of residuals via private securitization.
Consumer Portfolio Services closed a $50.0 million securitization backed by residual interests from four auto loan securitizations issued between January 2025 and October 2025. Qualified institutional buyers purchased asset-backed notes with an 8.75% coupon.
The notes are secured by an 80% interest in a majority-owned affiliate that holds residual interests, including 80% of spread account balances and 80% of over-collateralization. Monthly payments will cover interest and, when needed, principal to maintain a minimum collateral ratio, tying investor protections to collateral performance.
The transaction is a private offering under the Securities Act of 1933 and is described as an agreement in the ordinary course of business. Future company filings may show how this securitization interacts with CPS’s broader funding mix and residual cash flows from its 2025 securitizations.
8-K Event Classification
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 8.01. Other Events.
On March 4, 2026, the registrant announced the closing of a $50 million securitization of residual interests from previously issued securitizations secured by an 80% interest in a Consumer Portfolio Services, Inc. (“CPS”) majority owned affiliate (“MOA”) that owns the residual interests in four CPS securitizations issued from January 2025 through October 2025. The coupon on the notes is 8.75%.
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.
CPS disclaims any implication that the agreements described in this report are other than agreements entered into in the ordinary course of CPS's business.
Item 9.01. Financial Statements and Exhibits.
Neither financial statements nor pro forma financial information are filed with this report.
(d) Exhibits
One exhibit is included with this report:
| 99.1 | News release re March 4, 2026 transaction. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CONSUMER PORTFOLIO SERVICES, INC. | |
| Dated: March 4, 2026 | By: /s/ Denesh Bharwani |
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Denesh Bharwani Executive Vice President and Chief Financial Officer Signing on behalf of the registrant |
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Exhibit 99.1
NEWS RELEASE
CPS Announces $50.0 Million Securitization of Residual Interests
LAS VEGAS, Nevada, March 4, 2026 (GlobeNewswire) – Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the closing of a $50.0 million securitization of residual interests from previously issued securitizations.
In the transaction, qualified institutional buyers purchased $50.0 million of asset-backed notes secured by an 80% interest in a CPS majority owned affiliate (“MOA”) that owns the residual interests in four CPS securitizations issued from January 2025 through October 2025. The coupon on the notes is 8.75%.
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 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