Consumer Portfolio Services closed its fourth term securitization of the year this week. The transaction is CPS’ 15th senior subordinate securitization since the beginning of 2011 and the third consecutive securitization to receive a triple A rating on the senior class of notes.

In the transaction, qualified institutional buyers purchased $267.5 million of asset-backed notes secured by automobile receivables purchased by CPS.

The sold notes, issued by CPS Auto Receivables Trust 2014-D, consisted of five classes. Ratings of the notes were provided by Moody's and DBRS and were based on the structure of the transaction, the historical performance of similar receivables and CPS’ experience as a servicer. 

The weighted average effective coupon on the notes is approximately 3.07 percent.

CPS noted the 2014-D transaction has initial credit enhancement consisting of a cash deposit equal to 1.00 percent of the original receivable pool balance. The company added the final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 4.00 percent of the then-outstanding receivable pool balance.

The transaction utilizes a pre-funding structure, in which CPS sold approximately $182.2 million of receivables this week and plans to sell approximately $85.3 million of additional receivables in January.

“This further sale is intended to provide CPS with long-term financing for receivables purchased primarily in the month of December,” officials said.

“The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law,” the company continued. “All of such securities having been sold, this announcement of their sale appears as a matter of record only.”