CPS Closes Securitization Featured

By Staff Writer April 22, 2019 634

Consumer Portfolio Services Inc.  announced the closing of its second term securitization in 2019. 

The transaction is CPS's 32nd senior subordinate securitization since the beginning of 2011 and the 15th consecutive securitization to receive a triple “A” rating from at least two rating agencies on the senior class of notes. 

In the transaction, qualified institutional buyers purchased $228.3 million of asset-backed notes secured by $230 million in automobile receivables originated by CPS.  The sold notes consist of six classes. 

Ratings of the notes were provided by Standard & Poor’s and Kroll Bond Rating Agency.

The transaction has initial credit enhancement consisting of a cash deposit equal to 1 percent of the original receivable pool balance and over-collateralization of 0.75 percent.  

The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization.

The transaction utilizes a pre-funding structure, in which CPS sold approximately $143 million of receivables at inception and plans to sell approximately $87 million of additional receivables during May.  This further sale is intended to provide CPS with long-term financing for receivables purchased primarily in the month of April.

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Last modified on Monday, 22 April 2019 00:23