CPS completes $418.33 million asset-backed securitization

Consumer Portfolio Services (NASDAQ: CPSS) closed its third securitization of 2025, selling $418.33 million in asset-backed notes secured by $433.50 million in automobile receivables, according to a company statement.

The transaction represents the company's 56th senior subordinate securitization since 2011 and the 39th consecutive securitization to receive triple-A ratings from at least two rating agencies on the senior class of notes.

Qualified institutional buyers purchased notes issued by CPS Auto Receivables Trust 2025-C across five classes. Standard & Poor's and DBRS Morningstar provided ratings based on the transaction structure, historical performance of similar receivables, and CPS's servicing experience.

The Class A notes totaling $184.45 million carry a 4.71% interest rate and received AAA ratings from both agencies. Class B notes of $57.44 million also carry a 4.71% rate with AA ratings. Class C notes worth $72.39 million have a 4.91% rate and A ratings. Class D notes of $47.69 million carry a 5.28% rate with BBB ratings, while Class E notes totaling $56.36 million have a 6.59% rate.

The weighted average coupon on all notes is approximately 5.43%. The transaction includes initial credit enhancement consisting of a 1.00% cash deposit of the original receivable pool balance and 3.50% overcollateralization.

CPS provides indirect automobile financing to individuals with past credit problems or limited credit histories, purchasing retail installment contracts primarily from franchised automobile dealerships secured by late model used vehicles.

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