CONSUMER PORTFOLIO SERVICES, INC. (NASDAQ:CPSS) Files An 8-K Other EventsITEM 8.01.OTHER EVENTS.
On May 16, 2018, Consumer Portfolio Services, Inc. ("CPS") sold $40.0 million of asset-backed notes, secured by residual interests in 13 CPS securitizations issued consecutively from September 2013 through December 2016 and by an 80% interest in a CPS affiliate that owns the residual interests in four CPS securitizations issued in 2017.
The single class of notes bears interest at an annual rate of 8.595%. Interest will be paid on the notes monthly and principal payments will be made to the extent necessary to maintain a ratio of collateral to the outstanding notes at a specified level. For purposes of this transaction, the collateral consists of the spread account balances and the over-collateralization of the pledged securitizations. In the case of the 2017 securitizations, only 80% of the spread account balances and over-collateralization are included in the collateral.
CPS disclaims any implication that the agreements described in this report are other than agreements entered into in the ordinary course of CPS's business.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
One exhibit is included with this report:
| 99.1 | News release re May 16, 2018, transaction. |
CONSUMER PORTFOLIO SERVICES INC ExhibitEX-99.1 2 cps_ex9901.htm PRESS RELEASE Exhibit 99.1 NEWS RELEASE CPS Announces $40.0 Million Securitization of Residual Interests LAS VEGAS,…To view the full exhibit click here
About CONSUMER PORTFOLIO SERVICES, INC. (NASDAQ:CPSS)
Consumer Portfolio Services, Inc. is a specialty finance company. The Company’s business is to purchase and service retail automobile contracts originated primarily by franchised automobile dealers and by select independent dealers in the United States in the sale of new and used automobiles, light trucks and passenger vans. Through its automobile contract purchases, the Company provides indirect financing to the customers of dealers having limited credit histories, low incomes or past credit problems, who it refers to as sub-prime customers. It serves as an alternative source of financing for dealers, facilitating sales to customers. The Company offers approximately eight financing programs to its dealership customers and prices each program according to the relative credit risk. Its financing programs are Bravo, First Time Buyer, Mercury/Delta, Standard, Alpha, Alpha Plus, Super Alpha and Preferred.