Consumer Portfolio Services Inc. announced the closing of its second term securitization in 2017.
The transaction is CPS’s 24th senior subordinate securitization since the beginning of 2011 and the seventh 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 $225.17 million of asset-backed notes secured by $230 million in automobile receivables originated by CPS.
The sold notes, issued by CPS Auto Receivables Trust 2017-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.
The weighted average coupon on the notes is approximately 3.45 percent.
The 2017-B transaction has initial credit enhancement consisting of a cash deposit equal to 1 percent of the original receivable pool balance and over-collateralization of 2.1 percent. The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 7.45 percent of the then-outstanding receivable pool balance.
The transaction utilizes a pre-funding structure, in which CPS sold approximately $145.7 million of receivables and plans to sell approximately $84.3 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.
The Federal Trade Commission has extended the deadline until May 1 for the public to submit comments on topics that should be examined as part of a June 28 workshop on the consumer privacy and security issues posed by automated and connected motor vehicles.
Last month, the FTC and the National Highway Traffic Safety Administration (NHTSA), which is co-hosting the workshop, called on the public to submit comments on the privacy and security issues associated with connected cars. The comment deadline, originally set for April 20, has been extended to May 1 at the request of stakeholders.
A list of suggested questions and information about submitting comments can be found on the workshop’s detailed public notice.
It will be webcast live on the FTC’s website. Registration information, an agenda, directions to the FTC’s Constitution Center building, and a list of speakers will be available on the event webpage.