LAS VEGAS, Nevada, Oct. 18, 2018 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or
the “Company”) today announced the closing of its fourth term securitization in 2018. The transaction is CPS's 30th senior
subordinate securitization since the beginning of 2011 and the 13th 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 $233.7 million of asset-backed notes secured by
$245 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2018-D, consist of
five classes. Ratings of the notes were provided by Standard & Poor’s 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 |
KBRA
Rating |
|
A |
$112.3 million |
3.06% |
.74 years |
99.99971% |
AAA |
AAA |
|
B |
$35.5 million |
3.61% |
1.86 years |
99.98631% |
AA |
AA |
|
C |
$31.9 million |
3.83% |
2.60 years |
99.98714% |
A |
A |
|
D |
$27.8 million |
4.34% |
3.42 years |
99.99515% |
BBB |
BBB |
|
E |
$26.2 million |
5.82% |
4.11 years |
99.98236% |
BB- |
BB |
|
The weighted average coupon on the notes is approximately 4.25%.
The 2018-D transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and over-collateralization of 4.60%. The transaction agreements require accelerated payment of
principal on the notes to reach over-collateralization of the lesser of 8.50% of the original receivable pool balance, or 18.65% of
the then outstanding pool balance.
The transaction utilizes a pre-funding structure, in which CPS sold approximately $161.5 million of receivables
at inception and plans to sell approximately $83.5 million of additional receivables during November 2018. This further sale is
intended to provide CPS with long-term financing for receivables purchased primarily in the month of October. The initial funding
of $161.5 million includes $9.7 million of receivables that were originally securitized in 2013, the bonds secured by those
receivables having been prepaid by CPS.
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)