CPS Announces $307.0 Million Senior Subordinate Asset-Backed Securitization
October 26 2022 - 4:00PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced the closing of its fourth term
securitization in 2022. The transaction is CPS's 45th senior
subordinate securitization since the beginning of 2011 and the 28th
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 $307.0 million of asset-backed notes secured by
$337.4 million in automobile receivables originated by
CPS. The sold notes, issued by CPS Auto Receivables
Trust 2022-D, 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 |
$ 172.065 |
6.09% |
0.85 |
99.99296% |
Aaa |
AAA |
B |
$ 30.360 |
6.84% |
2.03 |
99.99159% |
Aa1 |
AA |
C |
$ 45.888 |
7.69% |
2.69 |
99.98702% |
A1 |
A |
D |
$ 22.605 |
8.73% |
3.44 |
99.99868% |
Baa3 |
BBB |
E |
$ 36.100 |
12.12% |
4.01 |
99.97467% |
NR |
BB |
|
|
|
|
|
|
|
The weighted average coupon on the notes is
approximately 8.48%.
The 2022-D transaction has initial credit
enhancement consisting of a cash deposit equal to 1.20% of the
original receivable pool balance and overcollateralization of
9.00%. The transaction agreements require accelerated payment of
principal on the notes to reach overcollateralization of the lesser
of 10.50% of the original receivable pool balance, or 25.00% of the
then outstanding pool balance.
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
Danny Bharwani, Chief Financial Officer949-753-6811
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