Consumer Portfolio Services Receives Additional Secured Financing, Finalizes Amendments to Residual Credit Facility
IRVINE, Calif. — Consumer Portfolio Services announced Monday that it has received an additional $15 million in senior secured financing from an affiliate of Levine Leichtman Capital Partners as a follow-up to last week's $10 million financing.
The company borrowed a total of $25 million from LLCP. As previously reported, LLCP received in aggregate 3 million shares of common stock and warrants in connection with the transaction.
CPS also announced that it has finalized an amendment to its residual credit facility with Citigroup Financial Products Inc. The company originally entered into the $120 million facility in July 2007, which consisted of a $60 million one-year revolving facility and a $60 million two-year term note.
The facility, on which about $87 million was outstanding as of June 30, 2008, is secured by eligible residual interests in previously securitized pools of automobile receivables.
Under the amendment, CPS has paid the principal balance down to $70 million of amortizing debt due June 2009.
The company also received an option, if certain conditions are met, to extend the maturity for an additional year to June 2010. Approximately $4 million of the principal repayment represented Citi's purchase of a nominal-price warrant to purchase 2.5 million shares of common stock.
"The completion of these two transactions is an important milestone for the company," said Charles Bradley Jr., president and chief executive officer.
"Our access to liquidity during this challenging capital markets environment validates the quality of the platform that we have developed over the last several years," he concluded.