Consumer Portfolio Services Secures $10 Million in Financing
IRVINE, Calif. — Consumer Portfolio Services, which specializes in purchasing and servicing new- and used-retail auto contracts, announced this morning that it has closed a new $10 million senior secured financing with an affiliate of Levine Leichtman Capital Partners.
The company indicated that it can receive an additional $15 million in financing if certain terms and conditions are met. LLCP received in aggregate 3 million shares of common stock and warrants in connection with the transaction. No additional equity is contemplated in relation to the additional $15 million, officials explained.
"This transaction provides liquidity to the company in this difficult capital markets environment," said Charles Bradley Jr., president and chief executive officer.
"While our sector remains under a cloud of negative sentiment, we continue executing our business plan. In the last nine months we have increased the yield on new contract purchases by over 500 basis points and substantially tightened credit. Asset performance remains well within expectations," he concluded.