Consumer Portfolio Services, Inc. Announces $245.0 Million Securitization.IRVINE, Calif. -- Consumer Portfolio Services, Inc. (Nasdaq:CPSS CPSS Committee on Payment and Settlement Systems CPSS Commission on Public Secondary Schools CPSS Cincinnati Prehospital Stroke Scale (STR - Smile, Talk, Raise both arms) CPSS Certified Professional Soil Scientist ) announced that it closed a term securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. transaction today, issuing $245 million of Notes backed by automotive receivables. In the transaction, qualified institutional buyers In law, a Qualified Institutional Buyer is a purchaser of securities that is financially sophisticated and is legally recognized by security market regulators to need less protection from sellers than most members of the public. purchased $245,000,000 of Notes backed by automotive receivables originated by Consumer Portfolio Services. The Notes, issued by CPS Auto Receivables Trust 2006-A, consist of four classes. The ratings of the Notes were provided by Standard & Poor's and Moody's Investors Services Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. and were based on the structure of the transaction, CPS's experience as a servicer and a financial guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. insurance policy issued by Financial Security Assurance Inc.
Note Amount Interest Average Price Standard Moody's
Class Rate Life & Poor's Rating
Rating
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A-1 $36.260 million 4.94278% 0.22 years 100.000 A-1+ P-1
A-2 $88.956 million 5.22000% 1.00 years 99.997 AAA Aaa
A-3 $37.874 million 5.25000% 2.00 years 99.991 AAA Aaa
A-4 $88.910 million 5.33000% 3.30 years 99.984 AAA Aaa
The weighted average effective coupon on the Notes is approximately 5.29%. The 2006-A transaction has initial credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing consisting of a cash deposit and first loss protection in the aggregate amount of 15.00% of the original receivable pool balance. That enhancement level is to be supplemented by accelerated payment of principal on the Notes to reach a combined level of 20.25% of the then-outstanding receivable pool balance. The transaction utilized a pre-funding structure, in which CPS sold approximately $144.3 million of receivables today and plans to sell approximately $100.7 million of additional receivables during April 2006. This further sale is intended to provide CPS with financing for receivables originated primarily in the month of March. 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 a consumer finance company that specializes in purchasing, selling and servicing retail automobile installment sale Installment sale The sale of an asset in exchange for a specified series of payments (the installments). installment sale A sale in which the buyer is scheduled to make a series of payments over a period of time. contracts originated by automobile dealers located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company is currently active in 47 states. Through its purchase of contracts, the Company provides indirect financing to car dealer customers with limited credit histories, low incomes or past credit problems. |
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