CPS Announces Doubling Of Credit Facility To $200 Million
Consumer Portfolio Services (Nasdaq: CPSS) announced an increase in its credit agreement with Ares Agent Services, raising its capacity from $100 million to $200 million. This amended agreement allows CPS to secure loans against automobile receivables that it holds or will originate in the future. CPS can borrow on a revolving basis until January 31, 2024, with the option for repayment or amortization until January 31, 2028. The company specializes in indirect automobile financing for individuals with credit challenges.
- Increased credit capacity from $100 million to $200 million enhances financing options.
- Ability to secure loans against automobile receivables provides financial flexibility.
- Potential defaults could terminate the revolving period or accelerate maturity of the credit.
- Economic conditions and consumer bankruptcy rates may adversely affect financial performance.
LAS VEGAS, Nevada, June 30, 2022 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced that on June 28, 2022 it increased the capacity of its credit agreement with Ares Agent Services, L.P. from
Loans under the amended credit agreement will be secured by automobile receivables that CPS now holds, will originate directly, or will purchase from dealers in the future. CPS may borrow on a revolving basis through January 31, 2024, after which CPS will have the option to repay the outstanding loans in full or to allow them to amortize through January 31, 2028.
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, low incomes 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.
Forward-looking statements in this news release include the Company's expectation that the revolving period will extend for two years, and that an amortization period may follow. The revolving credit agreement renewed on January 31, 2022 provides for both a revolving period and an amortization period to follow, but it is possible that the Company may suffer certain defaults or events of default that would terminate the revolving period or result in acceleration of maturity of the credit extended. In general, such defaults or events of default would result from losses that the Company might incur in the future. In turn, such losses might result from poor performance of receivables acquired or to be acquired by the Company, from increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; from changes in government regulations affecting consumer credit; or from adverse economic conditions, either generally or in geographic areas in which the Company's business is concentrated
Investor Relations Contact
Jeffrey P. Fritz, Chief Financial Officer
844 878-2777
FAQ
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