CPS Announces Renewal of $100 Million Credit Facility
February 03 2022 - 2:57PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced that on February 2, 2022 it renewed its
two-year revolving credit agreement with Ares Agent Services,
L.P.
Loans under the renewed credit agreement will be
secured by automobile receivables that CPS now holds, will
originate directly, or will purchase from dealers in the future.
CPS may borrow on a revolving basis through January 31, 2024, after
which CPS will have the option to repay the outstanding loans in
full or to allow them to amortize through January 31, 2028.
“We are pleased for this opportunity to renew
this facility and extend our relationship with Ares,” said Charles
E. Bradley, Jr., President and Chief Executive Officer. “With this
renewal we continue to maintain our strategy of having multiple
$100 million warehouse lines with multi-year revolving commitments
followed by amortization periods.”
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
primarily through the securitization markets and service the
contracts over their lives.
Forward-looking statements in this news release
include the Company's expectation that the revolving period will
extend for two years, and that an amortization period may follow.
The revolving credit agreement renewed on January 31, 2022 provides
for both a revolving period and an amortization period to follow,
but it is possible that the Company may suffer certain defaults or
events of default that would terminate the revolving period or
result in acceleration of maturity of the credit extended. In
general, such defaults or events of default would result from
losses that the Company might incur in the future. In turn, such
losses might result from poor performance of receivables acquired
or to be acquired by the Company, from increases in the rate of
consumer bankruptcy filings, which could adversely affect the
Company’s rights to collect payments from its portfolio; from
changes in government regulations affecting consumer credit; or
from adverse economic conditions, either generally or in geographic
areas in which the Company's business is concentrated
Investor Relations Contact
Jeffrey P. Fritz, Chief Financial Officer844 878-2777
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