CPS Announces $65.0 Million Securitization of Residual Interests
Consumer Portfolio Services (CPSS) has successfully closed a $65.0 million securitization of residual interests from previous securitizations. The transaction involves a qualified institutional buyer purchasing asset-backed notes secured by an 80% interest in a CPS majority owned affiliate that owns residual interests in five CPS securitizations issued from October 2023 through September 2024.
The majority owned affiliate interest encompasses 80% of the amounts in underlying spread accounts and 80% of the over-collateralization for each related securitization. Monthly payments will include interest at the coupon rate and potential principal payments to maintain a specified minimum collateral ratio. The transaction was executed as a private offering of securities, not registered under the Securities Act of 1933 or state securities laws.
Consumer Portfolio Services (CPSS) ha chiuso con successo una securitizzazione di 65,0 milioni di dollari di interessi residui da precedenti securitizzazioni. La transazione coinvolge un compratore istituzionale qualificato che acquista note garantite da attivi, supportate da un interesse dell'80% in un'affiliata di maggioranza di CPS che possiede interessi residui in cinque securitizzazioni CPS emesse da ottobre 2023 a settembre 2024.
L'interesse dell'affiliata di maggioranza comprende l'80% degli importi nei conti di spread sottostanti e l'80% dell'over-collateralization per ciascuna securitizzazione correlata. I pagamenti mensili includeranno interessi al tasso di cedola e potenziali pagamenti di capitale per mantenere un rapporto collaterale minimo specificato. La transazione è stata eseguita come offerta privata di titoli, non registrata ai sensi del Securities Act del 1933 o delle leggi statali sui titoli.
Consumer Portfolio Services (CPSS) ha cerrado con éxito una securitización de 65.0 millones de dólares de intereses residuales de securitizaciones anteriores. La transacción involucra a un comprador institucional calificado que adquiere notas respaldadas por activos garantizadas por un interés del 80% en una afiliada de propiedad mayoritaria de CPS que posee intereses residuales en cinco securitizaciones de CPS emitidas desde octubre de 2023 hasta septiembre de 2024.
El interés de la afiliada de propiedad mayoritaria abarca el 80% de los montos en las cuentas de spread subyacentes y el 80% de la sobrecolateralización para cada securitización relacionada. Los pagos mensuales incluirán intereses al tipo de cupón y posibles pagos de capital para mantener un ratio de colateral mínimo especificado. La transacción se ejecutó como una oferta privada de valores, no registrada bajo la Ley de Valores de 1933 ni las leyes estatales de valores.
소비자 포트폴리오 서비스 (CPSS)는 이전의 증권화로부터의 잔여 이익에 대한 6500만 달러의 증권화를 성공적으로 마감했습니다. 이 거래는 자산 담보 노트를 구매하는 자격 있는 기관 투자자가 80%의 지분을 보유한 CPS의 다수 소유 자회사를 통해 이루어집니다. 이 자회사는 2023년 10월부터 2024년 9월까지 발행된 다섯 개의 CPS 증권화에서 잔여 이익을 소유하고 있습니다.
다수 소유 자회사의 지분은 기초 스프레드 계좌의 금액의 80%와 각 관련 증권화에 대한 80%의 과잉 담보를 포함합니다. 월별 지급액에는 쿠폰 금리에 따른 이자와 특정 최소 담보 비율을 유지하기 위한 잠재적인 원금 지급이 포함됩니다. 이 거래는 1933년 증권법 또는 주 증권법에 따라 등록되지 않은 증권의 사적 제안으로 실행되었습니다.
Consumer Portfolio Services (CPSS) a réussi à clôturer une sécuirtisation de 65,0 millions de dollars d'intérêts résiduels provenant de sécuirtisations précédentes. La transaction implique un acheteur institutionnel qualifié achetant des titres adossés à des actifs garantis par un intérêt de 80% dans une filiale détenue majoritairement par CPS, qui possède des intérêts résiduels dans cinq sécuirtisations CPS émises d'octobre 2023 à septembre 2024.
L'intérêt de la filiale détenue majoritairement englobe 80% des montants dans les comptes de spread sous-jacents et 80% de la sur-collatéralisation pour chaque sécuirtisation associée. Les paiements mensuels comprendront des intérêts au taux de coupon et des paiements de capital potentiels pour maintenir un ratio de collatéral minimum spécifié. La transaction a été exécutée comme une offre privée de valeurs mobilières, non enregistrée en vertu de la loi sur les valeurs mobilières de 1933 ou des lois sur les valeurs mobilières des États.
Consumer Portfolio Services (CPSS) hat erfolgreich eine 65,0 Millionen Dollar umfassende Verbriefung von Restinteressen aus früheren Verbriefungen abgeschlossen. Die Transaktion beinhaltet einen qualifizierten institutionellen Käufer, der durch 80% Anteil an einem mehrheitlich im Besitz von CPS befindlichen Tochterunternehmen, das Restinteressen an fünf CPS-Verbriefungen hat, besicherte, asset-basierte Anleihen kauft, die von Oktober 2023 bis September 2024 ausgegeben wurden.
Das mehrheitlich gehaltene Tochterunternehmen umfasst 80% der Beträge in den zugrunde liegenden Spread-Konten und 80% der Überbesicherung für jede damit verbundene Verbriefung. Die monatlichen Zahlungen werden Zinsen zum Kuponzinssatz und potenzielle Kapitalzahlungen zur Aufrechterhaltung eines festgelegten Mindestbesicherungsverhältnisses umfassen. Die Transaktion wurde als private Wertpapierangebot durchgeführt, das nicht unter dem Securities Act von 1933 oder den staatlichen Wertpapiergesetzen registriert ist.
- Secured $65.0 million in new financing through securitization
- Leverages existing residual interests to generate additional capital
- Maintains 20% interest in the securitized assets
- Reduces future cash flow potential from existing securitizations by selling 80% interest
Insights
CPSS's $65 million securitization of residual interests represents a sophisticated capital management strategy with significant positive implications for the company's financial flexibility. This transaction converts long-term, illiquid assets into immediate capital by selling 80% interests in residual components from five previous securitizations.
The deal's structure is particularly notable - by monetizing residual interests (the spread accounts and over-collateralization) from securitizations issued between October 2023 and September 2024, CPSS has effectively accelerated future cash flows into immediate liquidity. At approximately 35% of the company's market capitalization, this injection of capital provides substantial financial flexibility.
For specialty finance companies like CPSS that focus on subprime auto lending, maintaining robust liquidity is crucial for funding new originations and navigating economic fluctuations. The transaction demonstrates both market confidence in CPSS's securitization quality and the company's sophistication in balance sheet management.
The 80/20 ownership structure suggests compliance with risk retention requirements while maximizing capital extraction. By retaining a 20% stake, CPSS maintains skin in the game while still accessing significant capital.
While the company sacrifices a portion of future profits from these residual interests, the immediate capital infusion enhances strategic optionality - whether for expanding loan originations, reducing other debt, or pursuing growth initiatives. This transaction ultimately strengthens CPSS's financial position in the specialty finance space.
LAS VEGAS, Nevada, March 20, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the closing of a
In the transaction, a qualified institutional buyer purchased
The MOA interest includes
The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law. All of such securities having been sold, this announcement of their sale appears as a matter of record only.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
Investor Relations Contact
Danny Bharwani, EVP/ Chief Financial Officer
949-753-6811
FAQ
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