LAS VEGAS -

Consumer Portfolio Services recently closed its third term securitization of the year.

The company pointed out the transaction is CPS’ 18th senior subordinate securitization since the beginning of 2011 and the first securitization to receive a triple-A rating on the senior class of notes from two rating agencies.

In the transaction, qualified institutional buyers purchased $300 million of asset-backed notes secured by auto receivables purchased by CPS. The sold notes, issued by CPS Auto Receivables Trust 2015-C, consist of six classes.

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

Note Class Amount  Interest Rate Average Life  Price S&P Rating DBRS Rating
 A  $156.74 million  1.77%  .93 years  99.99225%  AAA  AAA
 B  $37.50 million  2.55%  2.25 years  99.98180%  AA  AA
 C  $45.75 million  3.42%  2.91 years  99.97671%  A  A
 D  $32.25 million  4.63%  3.64 years  99.97997%  BBB  BBB
 E  $19.50 million  6.54%  4.08 years  99.98879%  BB  BB
 F  $8.26 million  7.51%  4.08 years  99.98473%  B  B

The weighted average effective coupon on the notes is approximately 3.78 percent.

CPS explained the 2015-C transaction has initial credit enhancement consisting of a cash deposit equal to 1.00 percent of the original receivable pool balance. 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.

Officials added the transaction utilizes a pre-funding structure, in which CPS sold approximately $197.9 million of receivables in September and plans to sell approximately $102.1 million of additional receivables during October.

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

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