Consumer Portfolio Services Inc. Completes $68.5 Million Securitization of Asset Backed Notes.Business Editors IRVINE, Calif.--(BUSINESS WIRE)--Sept. 10, 2001 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 it has completed a $68.5 million 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. . In a private placement, 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 notes backed by automotive receivables. The notes, issued by CPS Auto Receivables Trust 2001-A, consist of two classes: $44.5 million of 4.37% Class A-1 notes, and $24 million of 5.28% Class A-2 notes. The Class A-1 and A-2 notes, rated AAA/Aaa, were priced at par. The ratings 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. were based on the financial guaranty insurance policy issued by Financial Security Assurance Inc. This transaction represents the first term securitization completed by Consumer Portfolio Services since the fourth quarter of 1998. Substantially all of the proceeds from the issuance of the notes have been used to reduce amounts outstanding under the company's Revolving Note Purchase Facility. "Completing a term securitization is another key milestone in the continued turnaround of the company. We continue to make positive progress towards our previously stated goal of reestablishing CPS as an industry leader," said Charles E. Bradley Jr., president and chief executive officer of Consumer Portfolio Services. The notes were offered pursuant to Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. under the Securities Act of 1933, as amended (the "Act"), and they will not be registered under the Act. Accordingly, the notes will not be able to be offered or sold in 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. absent registration under the Act or an applicable exemption from the registration requirements of the Act. This news release does not constitute an offer to sell, or the solicitation of an offer to buy any securities of Consumer Portfolio Services or any of its affiliates. 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 more than 4,000 dealers under contract across the United States. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion