Consumer Portfolio Services, Inc. Completes $419.95 Million Securitization with Triple "A" Rating

Consumer Portfolio Services closed a $419.95 million securitization of auto receivables, maintaining high credit ratings.

Quiver AI Summary

Consumer Portfolio Services, Inc. (CPS) announced the successful closing of its second term securitization of 2025 on May 12, marking its 55th senior subordinate securitization since 2011. The transaction, which involved the sale of $419.95 million in asset-backed notes backed by $439.29 million in automobile receivables, received triple “A” ratings for the senior class of notes from two rating agencies. The notes were issued by CPS Auto Receivables Trust 2025-B and included five classes with a weighted average coupon of approximately 5.96%. Initial credit enhancement features include a cash deposit and overcollateralization, with provisions for accelerated principal payments. The offering was a private sale and not registered under securities laws. CPS specializes in indirect automobile financing for individuals with challenging credit histories.

Potential Positives

• Successful closing of the second term securitization in 2025 strengthens CPS's financial position by raising $419.95 million through the issuance of asset-backed notes.
• The transaction marks CPS's 38th consecutive securitization receiving a triple “A” rating from leading rating agencies, indicating strong investor confidence and creditworthiness.
• The issuance of five classes of notes with a weighted average coupon of approximately 5.96% demonstrates an attractive interest rate environment and potential for positive returns for investors.
• The initial credit enhancement structure, including a cash deposit and overcollateralization, adds a layer of security for investors, which can enhance the company's reputation in the capital markets.

Potential Negatives

• The presence of a class of notes rated BB indicates a portion of the securitization carries a significantly lower credit rating, suggesting potential higher risk for investors and highlighting possible weaknesses in CPS's asset pool.
• The transaction being a private offering not registered under the Securities Act may limit investor access and transparency, potentially impacting investor confidence and marketability of the securities.
• The heavy reliance on securitization for financing may expose CPS to market fluctuations and interest rate risks, raising concerns about long-term financial stability.

FAQ

What is the recent securitization announcement by Consumer Portfolio Services?

Consumer Portfolio Services announced the closing of its second term securitization in 2025, totaling $419.95 million in asset-backed notes.

How many securitizations has CPS completed since 2011?

CPS has completed 55 senior subordinate securitizations since the beginning of 2011.

What ratings did the CPS 2025-B securitization receive?

The 2025-B securitization received a triple “A” rating from at least two rating agencies on the senior class of notes.

What is the weighted average coupon on the notes issued in 2025-B?

The weighted average coupon on the notes for the 2025-B transaction is approximately 5.96%.

Who is eligible to purchase the asset-backed notes?

The asset-backed notes were purchased by qualified institutional buyers as part of a private offering.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$CPSS Insider Trading Activity

$CPSS insiders have traded $CPSS stock on the open market 25 times in the past 6 months. Of those trades, 0 have been purchases and 25 have been sales.

Here’s a breakdown of recent trading of $CPSS stock by insiders over the last 6 months:

• WILLIAM B ROBERTS has made 0 purchases and 18 sales selling 214,376 shares for an estimated $2,240,242.
• DANIEL S WOOD has made 0 purchases and 3 sales selling 13,000 shares for an estimated $135,860.
• CHRIS TERRY (Exec. Vice President) sold 10,000 shares for an estimated $101,600
• APRIL CRISP (Sr. Vice President) has made 0 purchases and 3 sales selling 7,500 shares for an estimated $80,975.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$CPSS Hedge Fund Activity

We have seen 23 institutional investors add shares of $CPSS stock to their portfolio, and 23 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• ALLIANZ ASSET MANAGEMENT GMBH removed 173,834 shares (-52.1%) from their portfolio in Q1 2025, for an estimated $1,507,140
• ROYAL BANK OF CANADA added 109,383 shares (+148.2%) to their portfolio in Q4 2024, for an estimated $1,187,899
• SEGALL BRYANT & HAMILL, LLC removed 47,434 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $515,133
• SQUAREPOINT OPS LLC removed 25,789 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $280,068
• CORTON CAPITAL INC. removed 16,848 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $182,969
• RENAISSANCE TECHNOLOGIES LLC removed 15,600 shares (-3.7%) from their portfolio in Q4 2024, for an estimated $169,416
• NUVEEN ASSET MANAGEMENT, LLC removed 14,590 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $158,447

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

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.

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 Officer


949-753-6811

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.