CPS Reveals Second Senior Subordinate Securitization of 2011

IRVINE, Calif. — Earlier this week, Consumer Portfolio Services closed its second rated term securitization of the year. The company indicated the transaction is CPS's third senior subordinate securitization since 1993.

In the transaction, officials explained qualified institutional buyers purchased $109,936,000 of asset-backed notes secured by automobile receivables purchased by CPS primarily in 2011.

The company pointed out the sold notes — issued by CPS Auto Receivables Trust 2011-B — consist of four classes.

Ratings of the notes were provided by Standard & Poor's and were based on the structure of the transaction, the historical performance of similar receivables and CPS' experience as a servicer.

Officials noted the weighted average effective coupon on the notes is approximately 4.51 percent.

CPS said the 2011-B transaction has initial credit enhancement consisting of a cash deposit equal to 2.00 percent of the original receivable pool balance and overcollateralization of 1.00 percent.

The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 13.00 percent of the then-outstanding receivable pool balance.

"The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law," CPS officials stressed.

"All of such securities having been sold, this announcement of their sale appears as a matter of record only," they added.