LAS VEGAS, Nevada, Jan. 23, 2019 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS)
(“CPS” or the “Company”) today announced the closing of its first term securitization in 2019. The transaction is CPS's
31st senior subordinate securitization since the beginning of 2011 and the 14th 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 $254.4 million of asset-backed notes secured by
$265 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2019-A,
consist of five classes. Ratings of the notes were provided by Standard & Poor’s and DBRS Inc., 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 |
A |
$123.5 million |
3.18% |
.77 years |
99.99571% |
AAA |
AAA |
B |
$40.0 million |
3.58% |
1.96 years |
99.99601% |
AA |
AA |
C |
$35.2 million |
3.89% |
2.70 years |
99.98917% |
A |
A |
D |
$29.9 million |
4.35% |
3.53 years |
99.97324% |
BBB |
BBB |
E |
$25.7 million |
5.81% |
4.12 years |
99.97445% |
BB- |
BB |
The weighted average coupon on the notes is approximately 4.22%.
The 2019-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 4.00%. The transaction agreements require accelerated payment
of principal on the notes to reach overcollateralization of the lesser of 8.50% of the original receivable pool balance, or 18.70%
of the then outstanding pool balance.
The transaction utilizes a pre-funding structure, in which CPS sold approximately $166.1 million of receivables
at inception and plans to sell approximately $98.9 million of additional receivables during February or March 2019. 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)