Consumer Portfolio Services closed its first securitization of 2025, issuing $442.4 million in asset-backed notes.
Quiver AI Summary
Consumer Portfolio Services, Inc. (CPS) announced the closing of its first term securitization in 2025, marking its 54th senior subordinate securitization since 2011. This transaction involves the sale of $442.4 million in asset-backed notes backed by $462.5 million in automobile receivables originating from CPS. The securitization, conducted through CPS Auto Receivables Trust 2025-A, includes five classes of notes that received triple "A" ratings from at least two agencies. The weighted average coupon on these notes is approximately 5.88%, with initial credit enhancements in place. This offering was conducted as a private transaction not registered under the Securities Act of 1933. CPS specializes in indirect automobile financing for individuals with credit challenges, funding contract purchases primarily through securitization markets.
Potential Positives
- The successful closing of the first term securitization in 2025 indicates strong demand for CPS's asset-backed notes, reflecting confidence from qualified institutional buyers.
- This transaction marks CPS's 54th senior subordinate securitization since 2011, demonstrating the company's established track record and experience in the market.
- The senior class of notes received a triple “A” rating from at least two rating agencies, showcasing the strength and security of the securitization structure, which is vital for investor confidence.
- The substantial amount of $442.4 million in asset-backed notes sold secures a notable level of funding for CPS, which can support continued operations and growth.
Potential Negatives
- The press release indicates a reliance on securitization for financing, which may pose risks if market conditions change or if the quality of the underlying receivables worsens.
- The Class D notes were rated only BBB, indicating potential concerns about credit risk and the stability of the company's receivables compared to higher-rated securities.
- The private nature of the securities offering could limit the pool of potential investors and liquidity in the market, raising concerns about the company's ability to raise funds in the future.
FAQ
What is the latest announcement from Consumer Portfolio Services?
Consumer Portfolio Services announced the closing of its first term securitization in 2025 on January 22, 2025.
How much was raised in the recent securitization?
The recent securitization raised $442.4 million of asset-backed notes secured by $462.5 million in automobile receivables.
What ratings did the securitized notes receive?
At least two rating agencies gave the senior class of notes a triple “A” rating, including Standard & Poor’s and DBRS Morningstar.
What types of consumers does Consumer Portfolio Services serve?
Consumer Portfolio Services primarily serves individuals with past credit problems or limited credit histories in the automobile financing sector.
What is the weighted average coupon on the notes issued?
The weighted average coupon on the notes issued in the transaction is approximately 5.88%.
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 28 times in the past 6 months. Of those trades, 0 have been purchases and 28 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 13 sales selling 200,000 shares for an estimated $2,105,578.
- CHARLES E JR BRADLEY (CEO) sold 70,000 shares for an estimated $689,500
- GREG WASHER has made 0 purchases and 2 sales selling 50,981 shares for an estimated $501,449.
- DENESH BHARWANI (Exec. Vice President) sold 31,717 shares for an estimated $347,935
- JOHN PATRICK HARTON (Sr. Vice President) has made 0 purchases and 2 sales selling 20,000 shares for an estimated $185,000.
- DANIEL S WOOD has made 0 purchases and 3 sales selling 13,000 shares for an estimated $135,860.
- APRIL CRISP (Sr. Vice President) has made 0 purchases and 5 sales selling 12,500 shares for an estimated $129,225.
- CHRIS TERRY (Exec. Vice President) sold 10,000 shares for an estimated $101,600
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CPSS Hedge Fund Activity
We have seen 25 institutional investors add shares of $CPSS stock to their portfolio, and 18 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALLIANZ ASSET MANAGEMENT GMBH added 333,877 shares (+inf%) to their portfolio in Q3 2024, for an estimated $3,131,766
- VERITY & VERITY, LLC added 120,509 shares (+inf%) to their portfolio in Q4 2024, for an estimated $1,308,727
- FISHER ASSET MANAGEMENT, LLC added 102,377 shares (+inf%) to their portfolio in Q3 2024, for an estimated $960,296
- SEGALL BRYANT & HAMILL, LLC added 47,434 shares (+inf%) to their portfolio in Q3 2024, for an estimated $444,930
- BLACKROCK, INC. added 35,193 shares (+5.9%) to their portfolio in Q3 2024, for an estimated $330,110
- INVESCO LTD. removed 24,744 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $232,098
- GOLDMAN SACHS GROUP INC added 18,584 shares (+inf%) to their portfolio in Q3 2024, for an estimated $174,317
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
LAS VEGAS, Nevada, Jan. 22, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) announced the closing of its first term securitization in 2025 on Wednesday January 22, 2025. The transaction is CPS's 54th senior subordinate securitization since the beginning of 2011 and the 37th 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 $442.4 million of asset-backed notes secured by $462.5 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2025-A, 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 Class |
Amount
(in millions) |
Interest Rate |
Average
Life (years) |
Price |
S&P’s
Rating |
DBRS
Rating |
|
A | $202.361 | 4.77% | 0.68 | 99.99342% | AAA | AAA | |
B | $60.820 | 5.02% | 1.75 | 99.98838% | AA | AA | |
C | $76.324 | 5.25% | 2.44 | 99.99740% | A | A | |
D | $47.410 | 5.66% | 3.30 | 99.98016% | BBB | BBB | |
E | $55.505 | 7.65% | 4.06 | 99.97327% | NR | BB | |
The weighted average coupon on the notes is approximately 5.88%.
The 2025-A transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 4.35%. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 8.50% of the original receivable pool balance, or 23.00% 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