CPS Announces $202.3 Million Senior Subordinate Asset-Backed Securitization
June 10 2020 - 1:55PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its second term
securitization in 2020. The transaction is CPS's 36th senior
subordinate securitization since the beginning of 2011 and the 19th
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 $202.3 million of asset-backed notes secured by
$221.9 million in automobile receivables originated by CPS.
The sold notes, issued by CPS Auto Receivables Trust 2020-B,
consist of five classes. Ratings of the notes were provided
by Standard & Poor’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 |
Average Life (years) |
Price |
S&P’sRating |
DBRSRating |
A |
$ 94.40 |
1.15% |
.62 |
99.99741% |
AAA |
AAA |
B |
$ 29.84 |
2.11% |
1.68 |
99.99071% |
AA |
AA |
C |
$ 34.39 |
3.30% |
2.31 |
99.98640% |
A |
A |
D |
$ 21.30 |
4.75% |
3.14 |
99.98087% |
BBB |
BBB |
E |
$ 22.41 |
7.38% |
3.93 |
99.98509% |
BB- |
BB |
|
|
|
|
|
|
|
The weighted average coupon on the notes is
approximately 4.09%.
The 2020-B transaction has initial credit
enhancement consisting of a cash deposit equal to 1.25% of the
original receivable pool balance and overcollateralization of 8.80%
of the original receivable pool balance. The transaction
agreements require accelerated payment of principal on the notes to
reach overcollateralization of the lesser of 13.00% of the original
receivable pool balance, or 37.50% of the then outstanding pool
balance.
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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