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Consumer Portfolio Services closes $196.3M securitization

Consumer Portfolio Services Inc. has closed its fourth term securitization of the year.

Qualified institutional buyers in a private offering bought $196.3 million of asset-backed notes secured by $200.0 million in automobile receivables originated by the company. The sold notes were issued by CPS Auto Receivables Trust 2017-D and consist of five classes. The weighted-average coupon on the notes is about 3.39%. The transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 1.85%. The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of the lessor of 6.80% of the original receivable pool balance or 18.50% of the then-outstanding pool balance.

The transaction uses a pre-funding structure, in which the company sold about $133.4 million of receivables on Oct. 17 and plans to sell about $66.6 million of additional receivables during October. The additional sale is intended to provide the company with long-term financing for receivables bought mainly in October.