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Consumer Portfolio Services (CPSS) has completed its third term securitization for 2025, raising $418.33 million. This is the company's 56th senior subordinate securitization since 2011. The transaction features a 5.43% weighted average coupon rate and robust credit enhancements, including a 1% cash deposit and 3.50% overcollateralization, which could increase to 8% or 21% of the original pool balance. The senior class notes received AAA ratings from multiple agencies, marking the 39th consecutive deal to achieve such a rating.

Consumer Portfolio Services (CPSS) has successfully closed its third term securitization for 2025, raising $418.33 million. This marks the company's 56th senior subordinate securitization since 2011 [1]. The transaction, which was privately offered and not registered under the Securities Act of 1933, featured a 5.43% weighted average coupon rate [2].

The securitization, known as CPS Auto Receivables Trust 2025-C, is secured by $433.50 million in automobile receivables originated by CPSS. The notes, issued by CPSS Auto Receivables Trust 2025-C, consist of five classes, with the senior class notes receiving AAA ratings from both Standard & Poor’s and DBRS Morningstar [3]. This is the 39th consecutive securitization to achieve such a high rating.

The transaction includes robust credit enhancements, with an initial cash deposit equal to 1% of the original receivable pool balance and overcollateralization of 3.50%. The agreements require accelerated payment of principal to reach overcollateralization of either 8% of the original pool balance or 21% of the then outstanding pool balance [1].

CPSS, an independent specialty finance company, provides indirect automobile financing to individuals with past credit problems or limited credit histories. The company purchases retail installment sales contracts primarily from franchised automobile dealerships, secured by late model used vehicles and, to a lesser extent, new vehicles [2].

References:
[1] https://finance.yahoo.com/news/cps-announces-418-33-million-173000889.html
[2] https://www.stocktitan.net/news/CPSS/cps-announces-418-33-million-senior-subordinate-asset-backed-ozcmroumusht.html
[3] https://www.morningstar.com/news/globe-newswire/9501580/cps-announces-41833-million-senior-subordinate-asset-backed-securitization