CPS Announces $395.6 Million Senior Subordinate Asset-Backed Securitization
April 20 2022 - 3:45PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its second term
securitization in 2022. The transaction is CPS's 43rd senior
subordinate securitization since the beginning of 2011 and the 26th
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 $395.6 million of asset-backed notes secured by
$430.0 million in automobile receivables originated by
CPS. The sold notes, issued by CPS Auto Receivables
Trust 2022-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 |
Average Life (years) |
Price |
Moody’s Rating |
DBRS Rating |
A |
$ |
213.920 |
2.88 |
% |
0.89 |
99.99340 |
% |
Aaa |
AAA |
B |
$ |
41.930 |
3.88 |
% |
2.07 |
99.99518 |
% |
Aa1 |
AA |
C |
$ |
60.200 |
4.33 |
% |
2.68 |
99.98584 |
% |
A1 |
A |
D |
$ |
25.800 |
5.19 |
% |
3.39 |
99.97416 |
% |
Baa3 |
BBB |
E |
$ |
53.750 |
7.14 |
% |
4.05 |
99.98002 |
% |
NR |
BB |
|
|
|
|
|
|
|
The weighted average coupon on the notes is
approximately 4.83%.
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
8.00%. The transaction agreements require accelerated payment of
principal on the notes to reach overcollateralization of the lesser
of 9.00% 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 $285.8 million of
receivables at inception and plans to sell approximately $144.2
million of additional receivables in May 2022. 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 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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