CPS Announces $274.3 Million Senior Subordinate Asset-Backed Securitization
October 16 2019 - 1:31PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its fourth term
securitization in 2019. The transaction is CPS's 34th senior
subordinate securitization since the beginning of 2011 and the 17th
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 $274.3 million of asset-backed notes secured by
$275 million in automobile receivables originated by CPS. The
sold notes, issued by CPS Auto Receivables Trust 2019-D, consist of
six 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 (in millions) |
Interest Rate |
Average Life (years) |
Price |
S&P Rating |
KBRA Rating |
A |
$118.3 |
2.17% |
.69 |
99.99989% |
AAA |
AAA |
B |
$47.3 |
2.35% |
1.82 |
99.99390% |
AA |
AA |
C |
$40.3 |
2.54% |
2.54 |
99.99389% |
A |
A |
D |
$34.2 |
2.72% |
3.35 |
99.98567% |
BBB |
BBB |
E |
$29.0 |
3.86% |
4.07 |
99.99326% |
BB- |
BB |
F |
$5.2 |
6.55% |
4.16 |
99.99309% |
B |
B+ |
The weighted average coupon on the notes is
approximately 2.95%.
The 2019-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
0.25%. The transaction agreements require accelerated payment
of principal on the notes to reach overcollateralization of the
lesser of 5.95% of the original receivable pool balance, or 16.00%
of the then outstanding pool balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $176.7 million of
receivables at inception and plans to sell approximately $98.3
million of additional receivables in November 2019. 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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