CPS Announces Renewal of $100 Million Credit Facility
September 25 2018 - 5:35PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced that on September 21, 2018 it renewed
its two-year revolving credit agreement with Citibank, N.A.
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 September 21, 2020,
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.
“We are pleased for this opportunity to continue
to business with Citibank, 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 recorded revenue, expense and provision for
credit losses, because these items are dependent on the Company’s
estimates of incurred losses. The accuracy of such estimates
may be adversely affected by various factors, which include (in
addition to risks relating to the economy generally) the following:
possible increased delinquencies; repossessions and losses on
retail installment contracts; incorrect prepayment speed and/or
discount rate assumptions; possible unavailability of qualified
personnel, which could adversely affect the Company’s ability to
service its portfolio; possible increases in the rate of consumer
bankruptcy filings, which could adversely affect the Company’s
rights to collect payments from its portfolio; other changes in
government regulations affecting consumer credit; possible declines
in the market price for used vehicles, which could adversely affect
the Company’s realization upon repossessed vehicles; and economic
conditions in geographic areas in which the Company's business is
concentrated. All of such factors also may affect the Company’s
future financial results, as to which there can be no assurance.
Any implication that the results of the most recently completed
quarter are indicative of future results is disclaimed, and the
reader should draw no such inference. Factors such as those
identified above in relation to the provision for credit losses may
affect future performance.
Investor Relations Contact
Jeffrey P. Fritz, Chief Financial Officer844 878-2777
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