Consumer Portfolio Services Inc. Announces $87.5 Million Securitization.Business Editors IRVINE, Calif.--(BUSINESS WIRE)--Oct. 1, 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 ) 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 yesterday, issuing $83.1 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 $83,125,000 of Notes backed by automotive receivables originated by Consumer Portfolio Services. The Notes, issued by CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. Auto Receivables Trust 2003-C, consist of two 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 XL Capital Assurance Inc. A subsidiary of CPS retained a subordinated $4.4 million certificate backed by the same receivables.
Standard & Moody's
Note Class Amount Interest Price Poor's Rating
Rate Rating
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A-1 $53.750 million 1.553% 100.00 AAA Aaa
A-2 $29.375 million 3.192% 100.00 AAA Aaa
The weighted average effective coupon on the Notes is approximately 2.6%. The transaction utilized a prefunding structure, in which CPS sold approximately $63.2 million of receivables yesterday, and plans to sell approximately $24.3 million of additional receivables in the month of October. This further sale is intended to provide CPS with financing for receivables originated primarily in the month of September. 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 purchases, sells and services retail installment sales contracts originated predominantly by franchised dealers for new and late model used cars. The company finances automobile purchases through dealers under contract across 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. . |
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