LAS VEGAS, Nevada, Jan. 18, 2017 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq:CPSS) (“CPS” or
the “Company”) today announced the closing of its first term securitization in 2017. The transaction is CPS's 23rd senior
subordinate securitization since the beginning of 2011 and the sixth consecutive securitization to receive a triple “A” rating on
the senior class of notes from at least two rating agencies.
In the transaction, qualified institutional buyers purchased $206.3 million of asset-backed notes secured by
$210.0 million in automobile receivables purchased by CPS. The sold notes, issued by CPS Auto Receivables Trust 2017-A,
consist of five classes. Ratings of the notes were provided by Standard & Poor’s, DBRS and Kroll Bond Rating Agency, 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 |
|
Interest
Rate |
|
Average
Life |
|
Price |
S&P Rating |
|
DBRS
Rating |
|
KBRA
Rating |
| A |
|
$99.12 million |
|
1.68 |
% |
|
.87 years |
|
99.99906 |
|
% |
AAA |
|
AAA |
|
AAA |
| B |
|
$29.92 million |
|
2.68 |
% |
|
2.14 years |
|
99.98567 |
|
% |
AA |
|
AA (high) |
|
AA |
| C |
|
$32.66 million |
|
3.31 |
% |
|
2.84 years |
|
99.98111 |
|
% |
A |
|
A |
|
A |
| D |
|
$24.57 million |
|
4.61 |
% |
|
3.59 years |
|
99.99845 |
|
% |
BBB |
|
BBB (low) |
|
BBB |
| E |
|
$20.05 million |
|
7.07 |
% |
|
4.14 years |
|
98.98958 |
|
% |
BB- |
|
BB (low) |
|
BB- |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The weighted average coupon on the notes is approximately 3.91%.
The 2017-A transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and over-collateralization of 1.75%. The final enhancement level requires accelerated
payment of principal on the notes to reach overcollateralization of 5.15% of the then-outstanding receivable pool balance.
The transaction utilizes a pre-funding structure, in which CPS sold approximately $131.5 million of receivables
today and plans to sell approximately $78.5 million of additional receivables during February 2017. 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 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 Officer 844-878-CPSS (844-878-2777)
