CPS Announces $391.6 Million Senior Subordinated Asset Backed Securitization | New

LAS VEGAS, Nev., Aug. 03, 2022 (GLOBE NEWSWIRE) — Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the closing of its third securitization in 2022. The transaction is CPS’s 44th senior subordinated securitization since the start of 2011 and the 27th consecutive securitization to receive a triple “A” rating from at least two rating agencies for the senior note category.

As part of the transaction, qualified institutional buyers purchased $391.6 million of asset-backed notes secured by $440.0 million of auto receivables issued by CPS. The tickets sold, issued by CPS Auto Receivables Trust 2022-C, consist of five categories. Note ratings were provided by Standard & Poor’s and DBRS Morningstar, and were based on the structure of the transaction, historical performance of similar debts and CPS’ experience as servicing agent.

Note Class Rising
(in millions)
Interest rate Medium
Life (years)
Price S&P
A $201,520 4.18% 0.74 99.99485% AAA AAA
B $54,340 4.88% 1.88 99.98946% AA AA
VS $58,740 5.28% 2.59 99.97998% A A
D $42,240 6.45% 3.53 99.98592% BBB BBB
E $34,760 9.08% 4.11 99.97929% BB BB

The weighted average coupon of the Notes is approximately 6.02%.

Transaction 2022-C features an initial credit enhancement consisting of a cash deposit equal to 1.00% of the initial pool of receivables balance and an overcollateralization of 11.00%. The Settlement Agreements require accelerated payment of principal on the Notes to achieve an overcollateralization of the lesser of 13.00% of the initial pool balance of receivables or 31.50% of the then outstanding pool balance.

The transaction uses a pre-funding structure, in which CPS sold approximately $368.0 million of receivables initially and expects to sell approximately $72.0 million of additional receivables in August 2022. This new sale aims to provide CPS long-term financing for receivables purchased mainly in July.

The transaction was a private offering of securities, not registered under the Securities Act of 1933 or any state securities law. All these titles having been sold, this announcement of their sale appears only as an official title.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automotive financing for people with credit issues or limited credit histories. We purchase installment retail contracts primarily from franchised automobile dealerships backed by late model used vehicles and, to a lesser extent, new vehicles. We finance these purchases of long-term contracts through the securitization markets and manage the loans throughout the term of their contracts.

Investor Relations

Jeffrey P. Fritz, Chief Financial Officer

844-878-SCSP (844-878-2777)

Copyright 2022 GlobeNewswire, Inc.