Consumer Portfolio Services (Nasdaq: CPSS) lifts warehouse credit line to $508M
Rhea-AI Filing Summary
Consumer Portfolio Services, Inc. renewed and increased its revolving warehouse credit facility with Citibank, N.A. and a subordinate lender, raising the maximum capacity from $335 million to $508 million. Borrowings are secured by automobile receivables that CPS holds or will originate and sell or contribute to a wholly owned subsidiary.
The facility allows advances of up to 96% of the principal balance of eligible pledged receivables, with the actual advance rate depending on receivable characteristics, securitization terms, and portfolio performance. CPS may borrow on a revolving basis through July 17, 2028, after which it can either repay outstanding loans in full or allow them to amortize over a one-year period, subject to possible earlier termination or acceleration upon defined events of default linked to credit losses, consumer bankruptcies, regulatory changes, or adverse economic conditions.
Positive
- The company renewed and upsized its warehouse credit facility to $508 million, providing extended secured funding capacity through July 17, 2028 with an additional one-year amortization option.
Negative
- None.
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warehouse credit facility financial
revolving credit agreement financial
amortization period financial
securitization markets financial
events of default financial
FAQ
What did Consumer Portfolio Services (CPSS) change in its credit facility?
How large is the renewed warehouse credit facility for CPSS?
Until when can CPSS borrow under the renewed revolving credit agreement?
What secures the Consumer Portfolio Services (CPSS) warehouse credit facility?
What risks could shorten the revolving period under the CPSS credit agreement?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM
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 1.01. Entry into a Material Definitive Agreement.
The information contained in Item 2.03 of this report is hereby incorporated by reference into this Item 1.01. The registrant disclaims any implication that the agreements relating to the transactions described in this report are other than agreements entered into in the ordinary course of its business.
Warehouse Credit Facility Amended and Renewed
On July 9, 2026, Consumer Portfolio Services, Inc. ("CPS" or the "Company") and its wholly-owned subsidiary Page Eight Funding LLC (the “Borrower”) amended and renewed a revolving credit agreement (the "Credit Agreement") and related agreements, all of which have been in place since May 2012, and most recently renewed on July 11, 2024. The agent to act on behalf of the several lenders (“Lenders”) under the Credit Agreement is Citibank, N.A.. Loans under the amended Credit Agreement are to be secured by automobile receivables that CPS now holds or may purchase from dealers or originate in the future, which receivables CPS would then sell or contribute to the Borrower.
Under the Credit Agreement, and subject to its terms and conditions, the Lenders have increased the capacity from $335 million and agreed to lend from time to time prior to the funding termination date up to a maximum of $508 million to be outstanding at any time. The amount that may be advanced under the Credit Agreement will be up to 96% of the principal amount of eligible pledged receivables. The advance percentage is dependent on characteristics of the pledged receivables, the terms of future term securitizations executed by CPS, and on performance of receivables purchased by CPS within the preceding three years, as to which there can be no assurance. The funding termination date is July 17, 2028 or earlier upon the occurrence of defined funding termination events. The amounts outstanding could become due at an earlier date, if any of certain defined events of default were to occur.
Loans under the Credit Agreement bear interest at a floating rate set as a margin above the secured overnight financing rate.
Affiliates of Citibank, N.A. have also performed investment banking and advisory services for CPS from time to time, for which they have received customary fees and expenses.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information provided in response to item 1.01 is incorporated herein by reference.
Warehouse Credit Facility
CPS first incurred indebtedness under the revolving credit agreement in May 14, 2012. CPS intends to incur indebtedness from time to time as it originates or purchases motor vehicle receivables from dealers. CPS does not undertake to provide updates regarding the amount of indebtedness outstanding from time to time, and no inference should be drawn that such indebtedness has not changed.
Item 9.01. Financial Statements and Exhibits.
Neither financial statements nor pro forma financial information are filed with this report.
One exhibit is included with this report:
| 99.1 | News release re renewal of credit facility. |
| 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: July 14, 2026 | By: /s/ Denesh Bharwani |
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Denesh Bharwani Executive Vice President and Chief Financial Officer Signing on behalf of the registrant |
| 3 |
Exhibit 99.1
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NEWS RELEASE |
CPS ANNOUNCES RENEWAL AND CAPACITY INCREASE OF CREDIT FACILITY
LAS VEGAS, Nevada, July 9, 2026 (GlobeNewswire) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced that on July 9, 2026, it renewed its two-year revolving credit agreement with Citibank, N.A. while simultaneously increasing the capacity of the facility. The renewal and increase apply to both Citibank, N.A. and the subordinate lender, and increases the capacity of the facility from $335 million to $508 million.
Loans under the renewed credit agreement will be secured by automobile receivables that CPS now holds or will originate in the future. CPS may borrow on a revolving basis through July 17, 2028, after which CPS will have the option to repay the outstanding loans in full or to allow them to amortize for a one-year 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 renewed on July 9, 2026, 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