CPS Announces $318.5 Million Senior Subordinate Asset-Backed Securitization
July 27 2016 - 1:21PM
Consumer Portfolio Services, Inc. (Nasdaq:CPSS) (“CPS” or the
“Company”) today announced the closing of its third term
securitization in 2016. The transaction is CPS's 21st senior
subordinate securitization since the beginning of 2011 and the
fourth 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 $318.5 million of asset-backed notes secured by
$325.0 million in automobile receivables purchased by CPS.
The sold notes, issued by CPS Auto Receivables Trust 2016-C,
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 |
|
$159.25 million |
|
|
1.62 |
% |
|
.80
years |
|
|
99.99961 |
% |
|
AAA |
|
AAA |
B |
|
$38.18
million |
|
|
2.48 |
% |
|
2.02
years |
|
|
99.99001 |
% |
|
AA |
|
AA |
C |
|
$50.38
million |
|
|
3.27 |
% |
|
2.68
years |
|
|
99.98835 |
% |
|
A |
|
A |
D |
|
$39.81
million |
|
|
5.92 |
% |
|
3.47
years |
|
|
99.97129 |
% |
|
BBB- |
|
BBB
(low) |
E |
|
$30.88
million |
|
|
8.39 |
% |
|
4.03
years |
|
|
99.98420 |
% |
|
BB- |
|
not
rated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The weighted average coupon on the notes is
approximately 4.48%.
The 2016-C transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and over-collateralization of
2.00%. The final enhancement level requires accelerated
payment of principal on the notes to reach overcollateralization of
5.50% of the then-outstanding receivable pool balance. The
transaction utilizes a pre-funding structure, in which CPS sold
approximately $216.1 million of receivables today and plans to sell
approximately $108.9 million of additional receivables during
August 2016. This further sale is intended to provide CPS
with long-term financing for receivables purchased primarily in the
month of July.
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)
Consumer Portfolio Servi... (NASDAQ:CPSS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Consumer Portfolio Servi... (NASDAQ:CPSS)
Historical Stock Chart
From Jul 2023 to Jul 2024