CPS Announces $316.8 Million Senior Subordinate Asset-Backed Securitization
February 02 2022 - 3:20PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its first term
securitization in 2022. The transaction is CPS's 42nd senior
subordinate securitization since the beginning of 2011 and the 25th
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 $316.8 million of asset-backed notes secured by
$330.0 million in automobile receivables originated by CPS. The
sold notes, issued by CPS Auto Receivables Trust 2022-A, consist of
five classes. Ratings of the notes were provided by Standard &
Poor’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.
|
Amount |
|
|
|
|
|
Note Class |
(in millions) |
Interest Rate |
Average Life (years) |
Price |
S&P’s Rating |
DBRS Rating |
A |
$ 157.740 |
0.98% |
0.70 |
99.99303% |
AAA |
AAA |
B |
$ 46.695 |
1.70% |
1.87 |
99.98551% |
AA |
AA |
C |
$ 49.335 |
2.17% |
2.57 |
99.98478% |
A |
A |
D |
$ 36.630 |
2.84% |
3.51 |
99.98972% |
BBB |
BBB |
E |
$ 26.400 |
4.88% |
4.12 |
99.97790% |
BB- |
BB |
The weighted average coupon on the notes is
approximately 2.54%.
The 2022-D transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and overcollateralization of
4.00%. The transaction agreements require accelerated payment of
principal on the notes to reach overcollateralization of the lesser
of 8.40% of the original receivable pool balance, or 25.80% of the
then outstanding pool balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $217.8 million of
receivables at inception and plans to sell approximately $112.2
million of additional receivables in February 2022. 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 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 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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