IRVINE, Calif. — Consumer Portfolio Services announced that it closed a term securitization transaction recently, issuing $244.4 million of triple A notes backed by automotive receivables.

In the term transaction, qualified institutional buyers purchased $244,409,000 of notes backed by automotive receivables purchased by CPS.

The notes, issued by CPS Auto Receivables Trust 2008-A, consist of four classes, according to the company. The ratings of the notes were provided by Standard & Poor's and Moody's Investors Services and were based on the structure of the transaction, in addition to CPS's experience as a servicer, along with a financial guaranty insurance policy issued by Financial Security Assurance Inc.

The weighted average effective coupon on the notes is approximately 6.23 percent.

The 2008-A transaction has initial credit enhancement of 24.25 percent, consisting of a cash deposit in the amount of 3 percent of the original receivable pool balance, plus subordinated interests of 21.25 percent.

That enhancement level is to be supplemented by accelerated payment of principal on the notes to reach a combined level of 27.75 percent of the then-outstanding receivable pool balance, officials indicated.

"We are pleased to have completed this transaction in a very difficult capital markets environment," said Charles Bradley Jr., chairman and chief executive officer of CPS.

"This was the first subprime auto transaction completed since November of last year. We were able to complete it, in large part, due to our track record of strong and consistent credit performance," he highlighted.

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