CPS Announces $201.8 Million Senior Subordinate Asset-Backed Securitization
April 16 2018 - 2:44PM
Consumer Portfolio Services, Inc. (Nasdaq:CPSS) (“CPS” or the
“Company”) today announced the closing of its second term
securitization in 2018. The transaction is CPS's 28th senior
subordinate securitization since the beginning of 2011 and the
eleventh 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 $201.8 million of asset-backed notes secured by
$205.0 million in automobile receivables originated by CPS.
The sold notes, issued by CPS Auto Receivables Trust 2018-B,
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 |
$93.7
million |
2.72% |
.79
years |
99.99577% |
AAA |
AAA |
B |
$33.0
million |
3.23% |
1.99
years |
99.99587% |
AA |
AA |
C |
$28.1
million |
3.58% |
2.66
years |
99.98204% |
A |
A |
D |
$24.7
million |
4.26% |
3.44
years |
99.49656% |
BBB |
BBB |
E |
$22.3
million |
5.61% |
4.12
years |
99.43146% |
BB- |
BB- |
|
|
|
|
|
|
|
The weighted average coupon on the notes is
approximately 3.98%.
The 2018-B transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and over-collateralization of
1.55%. The final enhancement level requires accelerated
payment of principal on the notes to reach overcollateralization of
the lesser of 5.50% of the original receivable pool balance, or
18.50% of the then outstanding pool balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $134.9 million of
receivables today and plans to sell approximately $70.1 million of
additional receivables during May 2018. This further sale is
intended to provide CPS with long-term financing for receivables
purchased primarily in the month of April.
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 Officer844-878-CPSS
(844-878-2777)
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