IRVINE, Calif. -

This week, Consumer Portfolio Services announced the closing of its first term securitization of the year. The transaction is CPS’ 12th senior subordinate securitization since the beginning of 2011.

In the transaction, qualified institutional buyers purchased $180 million of asset-backed notes secured by automobile receivables purchased by CPS.

The sold notes, issued by CPS Auto Receivables Trust 2014-A, consist of five classes.

The company highlighted ratings of the notes were provided by Standard & Poor’s and Moody's and were based on the structure of the transaction, the historical performance of similar receivables and CPS’ experience as a servicer.

Note Class Amount Interest Rate

Average
Life

 Price S&P Rating  Moody's Rating
 A  $128.7 million  1.21%  1.26 years  99.99012%  AA-  Aa3
 B  $20.7 million  2.40%  3.04 years  99.99433%  A  A1
 C  $16.6 million  3.29%  3.64 years  99.97855%  BBB  Baa2
 D  $9.0 million  5.11%  3.99 years  99.98850%  BB+  Ba3
 E  $5.0 million  6.38%  3.99 years  99.99128%  B+  B2

Officials noted the weighted average effective coupon on the notes is approximately 2.51 percent.

CPS explained the 2014-A 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 5.00 percent of the then-outstanding receivable pool balance.

The transaction utilizes a pre-funding structure, in which CPS sold approximately $111.2 million of receivables today and plans to sell approximately $68.8 million of additional receivables during April.

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

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