Consumer Portfolio Services Secures $418M in Funding Through Latest Securitization Deal.

Consumer Portfolio Services (CPSS) has closed a $418.33 million securitization deal, its third of the year and 56th since 2011. The deal was secured by $433.50 million in automobile receivables and marked CPS's 39th consecutive securitization to receive a triple 'A' rating from at least two rating agencies. The company primarily provides indirect automobile financing to individuals with past credit problems or limited credit histories.

Consumer Portfolio Services, Inc. (Nasdaq: CPSS) has successfully closed a $418.33 million securitization deal, marking its third such transaction in 2025 and the 56th since 2011. The deal, identified as CPS Auto Receivables Trust 2025-C, was secured by $433.50 million in automobile receivables and received a triple 'A' rating from at least two rating agencies, making it the company's 39th consecutive securitization to achieve this rating [1][2].

The notes, issued in five classes, were purchased by qualified institutional buyers and have a weighted average coupon of approximately 5.43%. The transaction includes initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.50%. The transaction agreements require accelerated payment of principal to reach overcollateralization of the lesser of 8.00% of the original receivable pool balance or 21.00% of the then outstanding pool balance [1][2].

Consumer Portfolio Services specializes in providing 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. The company funds these contract purchases on a long-term basis primarily through the securitization markets and services the contracts over their lives [1][3].

The transaction was conducted as a private offering of securities not registered under the Securities Act of 1933 or any state securities law. All such securities having been sold, this announcement of their sale appears as a matter of record only.

References:
[1] https://finance.yahoo.com/news/cps-announces-418-33-million-173000889.html
[2] https://ca.investing.com/news/company-news/consumer-portfolio-services-closes-41833-million-auto-securitization-93CH-4122028
[3] https://www.stocktitan.net/news/CPSS/cps-announces-418-33-million-senior-subordinate-asset-backed-ozcmroumusht.html