CPS Announces $245.0 Million Senior Subordinate Asset-Backed Securitization
October 18 2018 - 2:30PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its fourth term
securitization in 2018. The transaction is CPS's 30th senior
subordinate securitization since the beginning of 2011 and the 13th
consecutive securitization to receive a triple “A” rating from at
least two rating agencies on the senior class of notes.
In the transaction, qualified institutional
buyers purchased $233.7 million of asset-backed notes secured by
$245 million in automobile receivables originated by CPS. The sold
notes, issued by CPS Auto Receivables Trust 2018-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 |
InterestRate |
AverageLife |
Price |
S&P Rating |
KBRARating |
|
A |
$112.3 million |
3.06% |
.74 years |
99.99971% |
AAA |
AAA |
|
B |
$35.5 million |
3.61% |
1.86 years |
99.98631% |
AA |
AA |
|
C |
$31.9 million |
3.83% |
2.60 years |
99.98714% |
A |
A |
|
D |
$27.8 million |
4.34% |
3.42 years |
99.99515% |
BBB |
BBB |
|
E |
$26.2 million |
5.82% |
4.11 years |
99.98236% |
BB- |
BB |
|
The weighted average coupon on the notes is
approximately 4.25%.
The 2018-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
4.60%. The transaction agreements require accelerated payment of
principal on the notes to reach over-collateralization of the
lesser of 8.50% of the original receivable pool balance, or 18.65%
of the then outstanding pool balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $161.5 million of
receivables at inception and plans to sell approximately $83.5
million of additional receivables during November 2018. This
further sale is intended to provide CPS with long-term financing
for receivables purchased primarily in the month of October. The
initial funding of $161.5 million includes $9.7 million of
receivables that were originally securitized in 2013, the bonds
secured by those receivables having been prepaid by CPS.
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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