Consumer Portfolio Services secures $167.5 million revolving credit facility

Consumer Portfolio Services, Inc. (NASDAQ:CPSS), a $177.57 million market cap financial services company with strong liquidity metrics including a current ratio of 3.73, announced that on October 17, 2025, it and its wholly-owned subsidiary, Page Eleven Funding LLC, entered into a two-year revolving credit agreement with Capital One, N.A. and a Class B lender. According to a statement based on an SEC filing, the facility allows for up to $167.5 million in borrowings outstanding at any time. InvestingPro data shows the company currently manages total debt of $3.4 billion, with analysis indicating strong financial health through multiple metrics.

The loans under the credit agreement are secured by automobile receivables that Consumer Portfolio Services (CPS) currently holds or may acquire from dealers in the future. These receivables will be sold or contributed by CPS to the subsidiary, which serves as the borrower under the agreement.

Advances under the facility can be made up to 95.5% of the principal amount of eligible pledged receivables, subject to the terms and conditions of the agreement. The funding termination date is October 18, 2027, unless an earlier termination event occurs as defined in the agreement. Outstanding amounts may become due sooner if certain events of default take place.

Class A loans under the agreement bear interest at a floating rate equal to one-month SOFR plus 2.75%, with a minimum rate of 3% per year. Class B loans carry an interest rate of 3.65% above the total interest rate on Class A loans.

On October 22, 2025, CPS incurred approximately $19.6 million of indebtedness under the new revolving credit facility. The company stated that it intends to incur additional indebtedness from time to time as it purchases motor vehicle receivables from dealers.

This information is based on a statement in a press release and details provided in a recent SEC filing. With annual revenue of $192.26 million and trading at $8.09, InvestingPro analysis suggests the stock is slightly overvalued at current levels. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering detailed analysis of CPSS and 1,400+ other US stocks.

In other recent news, Consumer Portfolio Services reported its Q2 2025 earnings on August 12, falling short of analysts’ expectations in both earnings per share (EPS) and revenue. This development has led to cautious investor sentiment, although the company’s stock showed minimal movement in the aftermarket session. Analysts had projected higher figures, but the reported results did not meet these projections. The earnings call did not provide significant surprises beyond the earnings miss, and the company has not announced any major strategic changes or initiatives following the report. No mergers or acquisitions were disclosed in conjunction with the earnings announcement. Additionally, there have been no notable analyst upgrades or downgrades following the earnings release. These recent developments have kept the focus on the company’s financial performance and its future strategies to align with investor expectations.

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