Consumer Portfolio Services Enters Material Definitive Agreement

TL;DR

CPS inked a new deal, could mean big financial moves.

AI Summary

On April 23, 2024, Consumer Portfolio Services, Inc. entered into a material definitive agreement related to a financial obligation. The company, headquartered in Irvine, CA, filed an 8-K report detailing this event. The filing also includes financial statements and exhibits.

Why It Matters

This filing indicates a significant new financial commitment or arrangement for Consumer Portfolio Services, Inc., which could impact its financial obligations and operational structure.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and new financial obligations can introduce financial risks and operational changes that warrant careful monitoring.

Key Players & Entities

• CONSUMER PORTFOLIO SERVICES, INC. (company) — Registrant
• April 23, 2024 (date) — Date of earliest event reported
• Irvine, CA (location) — Business Address
• Las Vegas, NV (location) — Principal Executive Offices

FAQ

Key Financial Figures

• $337.2 million — ust 2024-B (the "Trust"), approximately $337.2 million of subprime automotive receivables (the
• $319.9 million — d below), (v) the Trust issued and sold $319.9 million of asset-backed Notes, in five classes
• $337.2 m — 10% of the initial aggregate balance of $337.2 million, CPS will have the option to purc

Filing Documents

• cps_8k.htm (8-K) — 38KB
• cps_ex9901.htm (EX-99.1) — 9KB
• image_001.jpg (GRAPHIC) — 3KB
• 0001683168-24-002668.txt ( ) — 230KB
• cpss-20240423.xsd (EX-101.SCH) — 3KB
• cpss-20240423_lab.xml (EX-101.LAB) — 34KB
• cpss-20240423_pre.xml (EX-101.PRE) — 22KB
• cps_8k_htm.xml (XML) — 4KB

01. Entry into a Material Definitive

Item 1.01. Entry into a Material Definitive Agreement. The information contained in Item 2.03 of this report is hereby incorporated by reference into this Item 1.01. The registrant disclaims any implication that the agreements relating to the transactions described in this report are other than agreements entered into in the ordinary course of its business. Securitization of Receivables On April 23, 2024, the registrant Consumer Portfolio Services, Inc. ("CPS") and its wholly owned subsidiary CPS Receivables Five LLC ("Subsidiary") entered into a series of agreements under which Subsidiary purchased from CPS, and sold to CPS Auto Receivables Trust 2024-B (the "Trust"), approximately $337.2 million of subprime automotive receivables (the "Receivables").

03. Creation of a Direct Financial

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. Securitization of Receivables CPS, Subsidiary, the Trust and others on April 23, 2024, entered into a series of agreements that, among other things, created long-term obligations that are material to CPS, Subsidiary and the Trust. Under these agreements (i) CPS sold the Receivables to Subsidiary (ii) Subsidiary sold the Receivables to the Trust (iii) the Trust deposited the Receivables with Computershare Trust Company, N.A. ("CTCNA"), as trustee of a grantor trust, receiving in return a certificate of beneficial interest ("CBI") representing beneficial ownership of the Receivables, (iv) the Trust pledged the CBI to CTCNA as indenture trustee for benefit of the holders of the Notes (as defined below), (v) the Trust issued and sold $319.9 million of asset-backed Notes, in five classes (such Notes collectively, the "Notes"), and (vi) a cash deposit (the "Reserve Account") in the amount of 1.00% of the aggregate balance of the Receivables was pledged for the benefit of the holders of the Notes. Security for the repayment of the Notes consists of the Receivables and the rights to payments relating to the Receivables. The Receivables were purchased by CPS from automobile dealers, and CPS will act as the servicer of the Receivables. Credit enhancement for the Notes consists of over-collateralization and the Reserve Account. CTCNA will act as collateral agent and trustee on behalf of the secured parties, and is the backup servicer. The Notes are obligations only of the Trust, and not of Subsidiary nor of CPS. Nevertheless, the Notes are properly treated as long-term debt obligations of CPS. The sale and issuance of the Notes, treated as secured financings for accounting and tax purposes, are treated as sales for all other purposes, including legal and bankruptcy purposes. None of the assets of the Trust or Subsidiary are available to pay other

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. One exhibit is included with this report: 99.1 News release re securitization transaction. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 3

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CONSUMER PORTFOLIO SERVICES, INC. Dated: April 24, 2024 By: /s/ Denesh Bharwani Denesh Bharwani Executive Vice President Signing on behalf of the registrant 4

View Full Filing

View this 8-K filing on SEC EDGAR