CPS Announces $224.8 Million Senior Subordinate Asset-Backed Securitization

Wednesday, July 26, 2017 5:50 PM UTC

LAS VEGAS, Nevada, July 26, 2017 -- Consumer Portfolio Services, Inc. (Nasdaq:CPSS) (“CPS” or the “Company”) today announced the closing of its third term securitization in 2017. The transaction is CPS's 25th senior subordinate securitization since the beginning of 2011 and the eighth 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 $224.83 million of asset-backed notes secured by $230.0 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2017-C, consist of five classes. Ratings of the notes were provided by Standard & Poor’s and DBRS, 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

$105.800 million

1.78

.66 years

99.99521

AAA

$35.075 million

2.30

1.78 years

99.99840

$31.050 million

2.86

2.47 years

99.97911

$27.600 million

3.79

3.31 years

99.97890

BBB

$25.300 million

5.72

4.01 years

99.97441

BB-

The weighted average coupon on the notes is approximately 3.52%.

The 2017-C transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and over-collateralization of 2.25%. The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 6.50% of the original receivable pool balance.

The transaction utilizes a pre-funding structure, in which CPS sold approximately $161.7 million of receivables today and plans to sell approximately $68.3 million of additional receivables during August 2017. This further sale is intended to provide CPS with long-term financing for receivables purchased primarily in the month of July. The initial funding of $161.7 million includes $15.7 million of receivables that were originally securitized in 2012, 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)

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CPS Announces $224.8 Million Senior Subordinate Asset-Backed Securitization

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