Consumer Portfolio Services closes $418.33 million auto securitization

LAS VEGAS - Consumer Portfolio Services, Inc. (NASDAQ:CPSS), a $193 million market cap financial services company, announced Monday the closing of its third term securitization in 2025, raising $418.33 million through the sale of asset-backed notes secured by $433.50 million in automobile receivables. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.94, indicating robust ability to meet short-term obligations.

The transaction, identified as CPS Auto Receivables Trust 2025-C, represents the company’s 56th senior subordinate securitization since 2011 and its 39th consecutive securitization to receive a triple A rating from at least two rating agencies on the senior class of notes. Trading at a P/E ratio of 9.92 and currently showing slight overvaluation based on InvestingPro’s Fair Value model, CPSS demonstrates consistent operational execution. Discover more insights with InvestingPro’s comprehensive research report, available along with 5+ additional ProTips for this stock.

The notes were purchased by qualified institutional buyers and issued in five classes with ratings provided by Standard & Poor’s and DBRS Morningstar. The weighted average coupon on the notes is approximately 5.43%.

Initial credit enhancement for the transaction consists of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.50%. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 8.00% of the original receivable pool balance, or 21.00% of the then outstanding pool balance.

Consumer Portfolio Services specializes in providing indirect automobile financing to individuals with past credit problems or limited credit histories. The company purchases retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. With analysts forecasting earnings of $1.34 per share for fiscal year 2025, CPSS continues to demonstrate profitability in its niche market. Access detailed financial analysis and expert insights through InvestingPro’s exclusive research reports, covering over 1,400 US stocks.

The transaction was conducted as a private offering of securities not registered under the Securities Act of 1933 or any state securities law, according to the company’s press release statement.

In other recent news, Consumer Portfolio Services, Inc. has successfully completed a $419.95 million auto loan-backed securitization. This marks the company’s 55th securitization since 2011 and the 38th consecutive one to receive a ’AAA’ rating for its senior class of notes from at least two rating agencies. The securitization involves notes issued by CPS Auto Receivables Trust 2025-B, with a weighted average coupon of approximately 5.96%. The senior class A notes, amounting to $191.52 million, received ’AAA’ ratings from both Standard & Poor’s and DBRS Morningstar, reflecting the deal’s structure and CPS’s strong servicing record.

Additionally, Consumer Portfolio Services has disclosed finalized non-equity incentive plan compensation for its executive officers for the fiscal year ended December 2024. This information was detailed in a Form 8-K filed with the Securities and Exchange Commission. The company’s Compensation Committee approved these incentive payments, which were not available during the initial filing of the company’s Form 10-K in March 2025. The revised Summary Compensation Table now reflects these amounts, providing a complete overview of each named executive officer’s total compensation for the fiscal year.

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