CPS Announces $418.33 Million Senior Subordinate Asset-Backed Securitization

Group 1 - Consumer Portfolio Services, Inc. (CPS) announced the closing of its third term securitization in 2025, marking its 56th senior subordinate securitization since 2011 and the 39th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1][2] - The transaction involved qualified institutional buyers purchasing $418.33 million of asset-backed notes secured by $433.50 million in automobile receivables originated by CPS, issued by CPS Auto Receivables Trust 2025-C [2] - The securitization notes consist of five classes with varying amounts, interest rates, and ratings, with a weighted average coupon of approximately 5.43% [3] Group 2 - The 2025-C transaction features initial credit enhancement including a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.50%, with agreements requiring accelerated principal payments to achieve specified overcollateralization levels [4] - CPS is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories, primarily funding contract purchases through securitization markets [6]