Consumer Portfolio Services, Inc. Opens New $75 Million Warehouse Credit Line.Business Editors IRVINE, Calif.--(BUSINESS WIRE)--Jan. 14, 2003 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 ) today announced that it has opened a new $75 million revolving warehouse credit facility. The new warehouse line is a structured finance facility with 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 provided by Financial Security Assurance Inc. The warehouse credit facility will enable Consumer Portfolio Services to borrow up to $75 million to purchase and hold automotive receivables, pending their ultimate disposition in future 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. transactions or otherwise. "This new warehouse line enhances our financial position and allows us to continue our strategy to grow methodically me·thod·i·cal also me·thod·ic adj. 1. Arranged or proceeding in regular, systematic order. 2. Characterized by ordered and systematic habits or behavior. See Synonyms at orderly. our receivables portfolio," said Charles E. Bradley, Jr., president and chief executive officer of Consumer Portfolio Services. "With this credit line, we are now even better positioned to take advantage of the current opportunities in the consumer automotive finance industry." 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 39 states. Through its purchase of contracts, the Company provides indirect financing to car dealer customers with limited credit histories or past credit problems, who generally would not be expected to qualify for financing provided by banks or by automobile manufacturers' captive finance companies Captive Finance Company A subsidiary whose purpose is to provide financing to customers buying the parent company's product. Notes: The captive finance company is usually wholly owned by the parent company. . This news release contains "forward-looking information" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking information includes the anticipation that the company will borrow under its new warehouse credit facility, repay amounts so drawn by securitization of receivables placed into such facility, and grow its receivables portfolio. There can be no assurance that securitization transactions will be effected to repay warehouse borrowings, nor that the Company's receivables portfolio will grow. Some of the factors that may adversely affect those possibilities are as follows: As to the warehouse credit facility, it may be impracticable to repay warehouse indebtedness and thus to revolve credit availability under such facility due to the terms available in the future in the market for securitizations, which terms may be affected by (i) prevailing interest rates, (ii) credit performance of receivables originated by Consumer Portfolio Services and held within or without such credit facility, (iii) credit performance of automotive receivables originated by other firms, (iv) credit evaluation policies of rating agencies, and (v) competitive conditions in the market for 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. As to growth in the receivables portfolio, the Company's ability to acquire receivables at a rate sufficient to result in portfolio growth may be affected by (i) limits on the Company's capital resources, which in turn depend in part on the performance of existing assets, and on the terms available in the future in the market for securitizations, and (ii) competition in the acquisition of receivables. |
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