CPS Announces Renewal of $100 Million Credit Facility
April 18 2017 - 1:04PM
Consumer Portfolio Services, Inc. (Nasdaq:CPSS) (“CPS” or the
“Company”) today announced that on April 17, 2017 it renewed its
two-year revolving credit agreement with the Fortress group of
companies.
Loans under the renewed credit agreement will be
secured by automobile receivables that CPS now holds, will
originate directly, or will purchase from dealers in the future.
CPS may borrow on a revolving basis through April 17, 2019, after
which CPS will have the option to repay the outstanding loans in
full or to allow them to amortize through April 17, 2021.
“We are pleased for this opportunity to continue
to do business with Fortress, with whom we have enjoyed a long and
mutually beneficial relationship,” said Charles E. Bradley, Jr.,
President and Chief Executive Officer. “With this renewal we
continue to maintain our strategy of having three $100 million
warehouse lines with multi-year revolving commitments followed by
amortization periods.”
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
primarily 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 April 17,
2017 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
Jeffrey P. Fritz, Chief Financial Officer
844 878-2777
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