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CPS Announces $419.95 Million Senior Subordinate Asset-Backed Securitization

1. CPS closed its second term securitization in 2025 on May 12. 2. Transaction is CPS's 38th consecutive securitization with triple 'A' ratings. 3. Qualified buyers purchased $419.95 million of asset-backed notes. 4. The weighted average coupon on the notes is approximately 5.96%. 5. Initial credit enhancement consists of a 1% cash deposit and 4.40% overcollateralization.

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Why Bullish?

CPS's high rating and successful securitization suggest strong financial health and investor confidence. Historical performance shows that successful securitizations often lead to positive stock price movements, as seen in previous securitization transactions.

How important is it?

The article highlights significant financial activities that are likely to reinforce investor interest and positively impact stock performance. Given the strong ratings and sales data, these factors suggest that CPSS could attract more short-term investments.

Why Short Term?

The market typically reacts promptly to positive news like securitization success, reflected in immediate stock price increases following similar announcements in the past.

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LAS VEGAS, Nevada, May 12, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) announced the closing of its second term securitization in 2025 on Monday May 12, 2025. The transaction is CPS's 55th senior subordinate securitization since the beginning of 2011 and the 38th consecutive securitization to receive a triple “A” rating from at least two rating agencies on the senior class of notes. In the transaction, qualified institutional buyers purchased $419.95 million of asset-backed notes secured by $439.29 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2025-B, consist of five classes. Ratings of the notes were provided by Standard & Poor’s and DBRS Morningstar, and were based on the structure of the transaction, the historical performance of similar receivables and CPS’s experience as a servicer. Note ClassAmount(in millions)Interest RateAverageLife (years)PriceS&P’sRatingDBRSRatingA$ 191.5204.74%0.6599.99620%AAAAAAB$ 58.4304.79%1.7599.99344%AAAAC$ 70.2805.12%2.4399.97744%AAD$ 40.6405.56%3.2399.97917%BBBBBBE$ 59.0807.95%3.9899.99266%NRBB        The weighted average coupon on the notes is approximately 5.96%. The 2025-B transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 4.40%. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 8.65% of the original receivable pool balance, or 22.00% of the then outstanding pool balance. The transaction was 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. 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, Chief Financial Officer949-753-6811

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