LAS VEGAS -

Seen as the raw material to generate more originations, Consumer Portfolio Services announced this week that it has entered into a new two-year revolving credit agreement with Credit Suisse AG and Ares Agent Services.

Executives indicated loans under the new credit agreement will be secured by automobile receivables that CPS now holds or will purchase from dealers in the future. They noted CPS may borrow on a revolving basis through November 2017, after which the company will have the option to repay the outstanding loans in full or to allow them to amortize for a further two-year period.

“We are pleased to have established this new facility and to have forged new relationships with partners such as Credit Suisse and Ares,” CPS president and chief executive officer Brad Bradley said.

“With this transaction, we now have three revolving credit facilities with aggregate capacity of $300 million, paving the way for future growth in originations volume,” Bradley added

During the third quarter, CPS purchased $287.5 million of new contracts, an increase of 2.9 percent, compared to $279.3 million during the third quarter of last year. 

The company’s managed receivables totaled $1.941 billion as of Sept. 30, an increase from $1.822 billion as of June 30 and $1.519 billion as of the end of last year’s third quarter.