Bank of America just raised its EUR/USD forecast
LAS VEGAS - Consumer Portfolio Services, Inc. (NASDAQ:CPSS), a specialty finance company, has completed its second auto loan securitization of 2025, raising $419.95 million backed by automobile receivables. The securitization, which closed today, marks the company’s 55th senior subordinate securitization since 2011 and the 38th in a row to earn a ’AAA’ rating from at least two rating agencies for its senior class of notes. According to InvestingPro data, CPSS maintains strong financial health with a current ratio of 2.37, indicating robust liquidity to support its operations.
The notes, issued by CPS Auto Receivables Trust 2025-B, are divided into five classes, with a weighted average coupon of approximately 5.96%. The senior class A notes amount to $191.52 million with an interest rate of 4.74% and received ’AAA’ ratings from both Standard & Poor’s and DBRS Morningstar. The ratings reflect the structure of the deal, the performance history of similar receivables, and CPS’s servicing record.
Initial credit enhancement measures for the transaction include a cash deposit of 1.00% of the original receivable pool balance and overcollateralization of 4.40%. Additionally, the agreements mandate accelerated principal payments to achieve overcollateralization of the lesser of 8.65% of the initial receivable pool balance or 22.00% of the current pool balance.
The offering was a private sale of securities, exempt from registration under the Securities Act of 1933 and state securities laws. Now that the securities have been sold, the company has made this announcement for record-keeping purposes.
Consumer Portfolio Services, Inc. specializes in indirect automobile financing for individuals with limited credit histories or past credit issues. The company primarily acquires retail installment sales contracts from franchised auto dealerships secured by used vehicles and, to a lesser extent, new vehicles. CPS services these contracts throughout their duration and primarily funds the purchases through securitization markets. According to InvestingPro analysis, the company maintains a strong financial health score and is expected to remain profitable this year, with analysts forecasting EPS of $2.05 for 2025. For detailed insights and comprehensive analysis, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
This transaction is part of CPS’s broader strategy to secure long-term financing for its contract purchases, as stated in the press release. The information in this article is based on a press release statement from Consumer Portfolio Services, Inc.
In other recent news, Consumer Portfolio Services (CPS) reported its fourth-quarter earnings for 2024, significantly surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.79, more than double the forecasted $0.31, and its revenue reached $105.3 million, exceeding the projected $103.17 million. In addition to these financial results, CPS completed a $65 million securitization deal involving the sale of residual interests from previous securitizations. This transaction was conducted privately and involved a qualified institutional buyer acquiring asset-backed notes. Furthermore, CPS disclosed executive compensation details for FY2024, revealing that CEO Charles E. Bradley, Jr. received a total compensation of $4,165,611, including a non-equity incentive plan compensation of $3,130,000. The company emphasized transparency in its SEC filing, highlighting its commitment to clear communication regarding executive pay. These developments reflect CPS’s strategic focus on growth and operational efficiencies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.