CPS Announces $332.7 Million Senior Subordinate Asset-Backed Securitization
April 20 2016 - 2:45PM
Consumer Portfolio Services, Inc. (Nasdaq:CPSS) (“CPS” or the
“Company”) today announced the closing of its second term
securitization in 2016. The transaction is CPS's 20th senior
subordinate securitization since the beginning of 2011 and the
third consecutive securitization to receive a triple “A” rating on
the senior class of notes from two rating agencies.
In the transaction, qualified institutional
buyers purchased $332.7 million of asset-backed notes secured by
$340.0 million in automobile receivables purchased by CPS.
The sold notes, issued by CPS Auto Receivables Trust 2016-B,
consist of five classes. Ratings of the notes were provided
by Standard & Poor’s and DBRS and were based on the structure
of the transaction, the historical performance of similar
receivables and CPS’s experience as a servicer.
Note
Class |
|
Amount |
|
Interest Rate |
|
Average Life |
|
Price |
S&P Rating |
|
DBRS
Rating |
A |
|
$162.86
million |
|
2.07 |
% |
|
.86
years |
|
|
99.99659 |
% |
|
AAA |
|
AAA |
B |
|
$53.72
million |
|
3.18 |
% |
|
2.19
years |
|
|
99.98786 |
% |
|
AA- |
|
AA
(high) |
C |
|
$56.27
million |
|
4.22 |
% |
|
2.96
years |
|
|
99.63882 |
% |
|
A- |
|
A
(low) |
D |
|
$35.02
million |
|
6.58 |
% |
|
3.73
years |
|
|
99.66959 |
% |
|
BBB- |
|
BBB
(low) |
E |
|
$24.82
million |
|
8.14 |
% |
|
4.44
years |
|
|
98.89697 |
% |
|
BB- |
|
BB
(low) |
|
|
|
|
|
|
|
|
|
|
|
The weighted average coupon on the notes is
approximately 4.65%.
The 2016-B transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and over-collateralization of
2.15%. The final enhancement level requires accelerated
payment of principal on the notes to reach overcollateralization of
5.65% of the then-outstanding receivable pool balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $224.3 million of
receivables today and plans to sell approximately $115.7 million of
additional receivables during May 2016. This further sale is
intended to provide CPS with long-term financing for receivables
purchased primarily in the month of April.
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, low incomes 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 loans over their entire
contract terms.
Investor Relations Contact
Jeffrey P. Fritz, Chief Financial Officer
844-878-CPSS (844-878-2777)
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