Consumer Portfolio Services, Inc. Announces $190.0 Million Senior Subordinate Asset-Backed Securitization
January 16, 2018 at 03:08 pm EST
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Consumer Portfolio Services, Inc. announced the closing of its first term securitization in 2018. In the transaction, qualified institutional buyers purchased $190.0 million of asset-backed notes secured by $193.6 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2018-A, consist of five classes. The 2018-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 1.85%. The final enhancement level requires accelerated payment of principal on the notes to reach over-collateralization of the lesser of 6.80% 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 $121.3 million of receivables and plans to sell approximately $72.3 million of additional receivables during January 2018. This further sale is intended to provide CPS with long-term financing for receivables purchased primarily in the month of January.
Consumer Portfolio Services, Inc. is a specialty finance company. The Companyâs business is to provide purchase and service retail automobile contracts originated primarily by franchised automobile dealers and, to a lesser extent, by select independent dealers in the United States in the sale of new and used automobiles, light trucks, and passenger vans. Through its automobile contract purchases, it provides indirect financing to the customers of dealers. It serves as an alternative source of financing for dealers, facilitating sales to customers from traditional sources, such as commercial banks, credit unions, and the finance companies affiliated with automobile manufacturers. It also originates vehicle purchase money loans by lending directly to consumers. It offers over eight different financing programs and prices each program according to relative credit risk. Its financing programs include First Time Buyer, Mercury / Delta, Standard, Alpha, Alpha Plus, Super Alpha and Preferred.
CONSUMER PORTFOLIO SERVICES, INC. 
