CPS Announces $ 349.2 Million Senior Subordinated Asset-Backed Securitization

LAS VEGAS, November 03, 2021 (GLOBE NEWSWIRE) – Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the closing of its fourth term securitization in 2021. The transaction is CPS 41st senior subordinated securitization since the start of 2011 and 24th consecutive securitization to receive a triple “A” rating from at least two rating agencies on the senior rating class.

As part of the transaction, qualified institutional buyers purchased $ 349.2 million in asset-backed notes secured by $ 360.0 million of auto receivables issued by CPS. Sold tickets, issued by CPS Auto Receivables Trust 2021-D, consist of five categories. Ratings for the Notes were provided by Moody’s and DBRS Morningstar, and were based on the transaction structure, historical performance of similar receivables and CPS ‘experience as a manager.

Note Class

Rising
(in millions)

Interest rate

Average life (years)

Price

Moody’s rating

DBRS notation

A

$ 189,000

0.61%

0.72

99.99411%

Aaa

AAA

B

$ 44,460

1.09%

1.94

99.99901%

Aa1

AA

VS

$ 37,801

1.59%

2.52

99.99824%

A1

A

D

$ 39,240

2.31%

3.27

99.98179%

Baa3

BBB

E

$ 38,701

4.06%

3.99

99.97662%

NR

BB

The weighted average coupon on the Notes is approximately 2.09%.

Transaction 2021-D has an initial credit enhancement consisting of a cash deposit equal to 1.00% of the initial balance of the receivables pool and an over-collateralization of 3.00%. The transaction agreements require an expedited payment of principal on the Notes to achieve an over-collateralization of the lesser of 6.30% of the original debt pool balance, or 20.25% of the pool balance then unpaid.

The transaction uses a pre-finance structure, in which CPS sold around $ 256.5 million in receivables at the start and plans to sell around $ 103.5 million in additional receivables in November 2021. This new sale aims to provide CPS long-term financing for purchased receivables. mainly in October.

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 is only indicative.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent, specialty finance company that provides indirect auto financing to people with poor credit, low income, or limited credit history. We purchase installment retail contracts primarily from franchised car dealerships backed by newer model used vehicles and, to a lesser extent, new vehicles. We finance these long-term contract purchases through the securitization markets and provide loan servicing for the duration of their contract.

Investor Relations Contact

Jeffrey P. Fritz, Chief Financial Officer
844-878-CPSS (844-878-2777)


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