IRVINE, CA, Apr 11, 2008 (MARKET WIRE via COMTEX News Network) -- Consumer Portfolio Services, Inc. (NASDAQ: CPSS) ("CPS" or the
"Company") announced that it closed a term securitization transaction
yesterday, issuing $244.4 million of triple A notes backed by
In the term transaction, qualified institutional buyers purchased
$244,409,000 of notes backed by automotive receivables purchased by
CPS. The notes, issued by CPS Auto Receivables Trust 2008-A, consist
of four classes. The ratings of the notes were provided by Standard
& Poor's and Moody's Investors Services and were based on the
structure of the transaction, CPS's experience as a servicer and a
financial guaranty insurance policy issued by Financial Security
Note Average Standard & Moody's
Class Amount Coupon Life Poor's Rating Rating
A-1 $39.130 million 3.4695% 0.13 years A-1+ P-1
A-2 $95.059 million 4.95% 1.00 years AAA Aaa
A-3 $88.220 million 6.48% 2.52 years AAA Aaa
A-4 $22.000 million 7.13% 3.95 years AAA Aaa
The weighted average effective coupon on the notes is approximately
The 2008-A transaction has initial credit enhancement of 24.25%
consisting of a cash deposit in the amount of 3.00% of the original
receivable pool balance, plus subordinated interests of 21.25%. That
enhancement level is to be supplemented by accelerated payment of
principal on the notes to reach a combined level of 27.75% of the
then-outstanding receivable pool balance.
"We are pleased to have completed this transaction in a very
difficult capital markets environment," said Charles E. Bradley, Jr.,
Chairman and Chief Executive Officer of CPS. "This was the first
subprime auto transaction completed since November of last year. We
were able to complete it, in large part, due to our track record of
strong and consistent credit performance."
The transaction was a private offering of securities, not registered
under the Securities Act of 1933, or any state securities law. All of
such securities having been sold, this announcement of their sale
appears as a matter of record only.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is a specialty finance company
engaged in purchasing and servicing new and used retail automobile
contracts originated primarily by franchised automobile dealerships
and to a lesser extent by select independent dealers of used
automobiles in the United States. We serve as an alternative source
of financing for dealers, facilitating sales to sub-prime customers,
who have limited credit history, low income or past credit problems
and who otherwise might not be able to obtain financing from
Consumer Portfolio Services, Inc.
Robert E. Riedl
SOURCE: Consumer Portfolio Services, Inc.