CPS Announces $240.0 Million Senior Subordinate Asset-Backed Securitization
April 28 2021 - 2:23PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its second term
securitization in 2021. The transaction is CPS's 39th senior
subordinate securitization since the beginning of 2011 and the 22nd
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 $240.0 million of asset-backed notes secured by
$240.0 million in automobile receivables originated by CPS. The
sold notes, issued by CPS Auto Receivables Trust 2021-B, consist of
five classes. Ratings of the notes were provided by Moody’s and
DBRS Morningstar, 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 |
AverageLife (years) |
Price |
Moody’sRating |
DBRSRating |
A |
$125.640 |
0.37 |
% |
0.70 |
99.99532 |
% |
Aaa |
AAA |
B |
$30.000 |
0.81 |
% |
1.90 |
99.99506 |
% |
Aa1 |
AA |
C |
$36.360 |
1.23 |
% |
2.57 |
99.99538 |
% |
A2 |
A |
D |
$18.000 |
1.52 |
% |
3.26 |
99.99314 |
% |
Baa3 |
BBB |
E |
$30.000 |
3.41 |
% |
3.96 |
99.98304 |
% |
NR |
BB |
|
|
|
|
|
|
|
The weighted average coupon on the notes is
approximately 1.65%.
The 2021-B 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 7.00% of the original
receivable pool balance, or 26.00% of the then outstanding pool
balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $155.5 million of
receivables at inception and plans to sell approximately $84.5
million of additional receivables in May 2021. This further sale is
intended to provide CPS with long-term financing for receivables
purchased primarily in the month of April.
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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