Transaction Details - CPS closed its first term securitization in 2025, marking its 54th senior subordinate securitization since 2011 and the 37th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1] - Qualified institutional buyers purchased 462.5 million in automobile receivables originated by CPS [2] - The sold notes consist of five classes with varying interest rates, average lives, prices, and ratings from Standard & Poor's and DBRS Morningstar [3] - The weighted average coupon on the notes is approximately 5.88% [3] Credit Enhancement and Payment Terms - The 2025-A transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 4.35% [4] - The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 8.50% of the original receivable pool balance, or 23.00% of the then outstanding pool balance [4] Company Overview - CPS is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories [6] - The company purchases retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles [6] - CPS funds these contract purchases on a long-term basis primarily through the securitization markets and services the contracts over their lives [6]
CPS Announces $442.4 Million Senior Subordinate Asset-Backed Securitization