CPS Announces $252.2 Million Senior Subordinate Asset-Backed Securitization
September 15 2020 - 1:49PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its third term
securitization in 2020. The transaction is CPS's 37th senior
subordinate securitization since the beginning of 2011 and the 20th
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 $252.2 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-C, 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.
Note Class |
Amount (in millions) |
Interest Rate |
Average Life(years) |
Price |
Moody’sRating |
DBRSRating |
A |
$107.77 |
0.63% |
.63 |
99.99485% |
Aaa |
AAA |
B |
$38.48 |
1.01% |
1.67 |
99.99035% |
Aa1 |
AA |
C |
$45.50 |
1.71% |
2.40 |
99.99791% |
A1 |
A |
D |
$29.25 |
2.41% |
3.28 |
99.96921% |
Baa2 |
BBB |
E |
$26.00 |
4.22% |
4.00 |
99.99377% |
NR |
BB |
F |
$5.20 |
6.67% |
4.08 |
99.99783% |
NR |
B |
The weighted average coupon on the notes is
approximately 2.39%.
The 2020-C transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and overcollateralization of
3.00%. The transaction agreements require accelerated payment of
principal on the notes to reach overcollateralization of the lesser
of 7.00% of the original receivable pool balance, or 19.00% of the
then outstanding pool balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $196.3 million of
receivables at inception and plans to sell approximately $63.7
million of additional receivables in October 2020. This further
sale is intended to provide CPS with long-term financing for
receivables purchased primarily in the month of
September.
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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