CPS Announces $196.3 Million Senior Subordinate Asset-Backed Securitization
October 17 2017 - 12:11PM
Consumer Portfolio Services, Inc. (Nasdaq:CPSS) (“CPS” or the
“Company”) today announced the closing of its fourth term
securitization in 2017. The transaction is CPS's 26th senior
subordinate securitization since the beginning of 2011 and the
ninth consecutive securitization to receive a triple “A” rating on
the senior class of notes from at least two rating
agencies.
In the transaction, qualified institutional
buyers purchased $196.3 million of asset-backed notes secured by
$200.0 million in automobile receivables originated by CPS.
The sold notes, issued by CPS Auto Receivables Trust 2017-D,
consist of five classes. Ratings of the notes were provided
by Standard & Poor’s and Kroll Bond Rating Agency, 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 |
|
KBRA
Rating |
A |
|
$91.4
million |
|
1.87 |
% |
|
.75
years |
|
99.99875 |
% |
|
AAA |
|
AAA |
B |
|
$32.5
million |
|
2.43 |
% |
|
1.95
years |
|
99.99125 |
% |
|
AA |
|
AA |
C |
|
$27.9
million |
|
3.01 |
% |
|
2.65
years |
|
99.97725 |
% |
|
A |
|
A |
D |
|
$23.8
million |
|
3.73 |
% |
|
3.48
years |
|
99.98753 |
% |
|
BBB |
|
BBB |
E |
|
$20.7
million |
|
5.30 |
% |
|
4.13
years |
|
99.97785 |
% |
|
BB- |
|
BB- |
The weighted average coupon on the notes is
approximately 3.39%.
The 2017-D transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and over-collateralization of
1.85%. The final enhancement level requires accelerated
payment of principal on the notes to reach overcollateralization of
the lessor of 6.80% of the original receivable pool balance, or
18.50% of the then outstanding pool balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $133.4 million of
receivables today and plans to sell approximately $66.6 million of
additional receivables during October 2017. This further sale
is intended to provide CPS with long-term financing for receivables
purchased primarily in the month of October.
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 Officer844-878-CPSS
(844-878-2777)
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