Consumer Portfolio Services Inc. Announces Fourth Asset-Backed Securitization in 2002.Business Editors IRVINE, Calif.--(BUSINESS WIRE)--Dec. 23, 2002 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 - news) today announced that on December 19, 2002, it completed a 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, issuing $99.3 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 $99,304,000 of Notes backed by automotive receivables originated by Consumer Portfolio Services and its subsidiaries. The Notes, issued by CPS Auto Receivables Trust 2002-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. The transaction represents the fourth securitization completed by Consumer Portfolio Services, Inc. and subsidiaries in 2002.
Standard
&
Interest Poor's Moody's
Note Class Amount Rate Price Rating Rating
----------------------------------------------------------------------
A-1 $30.78 million 1.90% 100.00 A1+ Prime-1
A-2 $68.52 million 3.52% 100.00 AAA Aaa
"The completion of our fourth securitization transaction this year is a milestone for CPS and indicates that we have successfully re-established ourselves in the securitization market. This has been one of our primary goals for 2002," said Charles E. Bradley, Jr., President and Chief Executive Officer of Consumer Portfolio Services, Inc. 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 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. . |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion