CPS Announces $260.0 Million Senior Subordinate Asset-Backed Securitization
January 15 2020 - 3:11PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its first term
securitization in 2020. The transaction is CPS's 35th senior
subordinate securitization since the beginning of 2011 and the 18th
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 $260.0 million of asset-backed notes secured by
$260 million in automobile receivables originated by CPS. The
sold notes, issued by CPS Auto Receivables Trust 2020-A, consist of
six classes. Ratings of the notes were provided by Moody’s
and DBRS, and were based on the structure of the transaction, the
historical performance of similar receivables and CPS’s experience
as a servicer.
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Note Class |
Amount (in millions) |
Interest Rate |
AverageLife (years) |
Price |
Moody’sRating |
DBRSRating |
A |
$ 130.00 |
2.09% |
.73 |
99.99508% |
Aaa |
AAA |
B |
$ 34.06 |
2.36% |
1.91 |
99.99748% |
Aa1 |
AA |
C |
$ 37.18 |
2.54% |
2.61 |
99.97876% |
A3 |
A |
D |
$ 26.00 |
2.90% |
3.36 |
99.97023% |
Baa3 |
BBB |
E |
$ 26.26 |
4.09% |
3.98 |
99.97839% |
NR |
BB |
F |
$ 6.50 |
6.93% |
4.08 |
99.99251% |
NR |
B |
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The weighted average coupon on the notes is
approximately 3.08%.
The 2020-A transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance. The transaction agreements
require accelerated payment of principal on the notes to reach
overcollateralization of the lesser of 4.00% of the original
receivable pool balance, or 11.00% of the then outstanding pool
balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $170.9 million of
receivables at inception and plans to sell approximately $89.1
million of additional receivables in February 2020. This
further sale is intended to provide CPS with long-term financing
for receivables purchased primarily in the month of
January.
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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