Consumer Portfolio Services Enters Material Definitive Agreement

TL;DR

CPS entered a new deal on 6/26, creating a financial obligation. Filing today.

AI Summary

Consumer Portfolio Services, Inc. entered into a material definitive agreement on June 26, 2024, which involves a direct financial obligation. The company, headquartered in Irvine, CA, filed this 8-K report on July 2, 2024, detailing the terms of this agreement.

Why It Matters

This filing indicates a significant new financial commitment or obligation for Consumer Portfolio Services, Inc., which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — Entering into new material definitive agreements and financial obligations can introduce new risks related to the terms, performance, and market conditions associated with the agreement.

Key Players & Entities

• CONSUMER PORTFOLIO SERVICES, INC. (company) — Registrant
• June 26, 2024 (date) — Date of earliest event reported
• July 2, 2024 (date) — Filing date
• Irvine, CA (location) — Company Headquarters
• Las Vegas, NV (location) — Company Address

FAQ

Key Financial Figures

• $319.85 million — ust 2024-C (the "Trust"), approximately $319.85 million of subprime automotive receivables (the
• $140.15 million — ed to sell to Subsidiary, an additional $140.15 million of similar automotive receivables (the
• $436.31 million — d below), (v) the Trust issued and sold $436.31 million of asset-backed Notes, in five classes
• $460.0 m — e intended initial aggregate balance of $460.0 million, CPS will have the option to purc

Filing Documents

• cps_8k.htm (8-K) — 38KB
• cps_ex9901.htm (EX-99.1) — 10KB
• image_004.jpg (GRAPHIC) — 3KB
• 0001683168-24-004590.txt ( ) — 230KB
• cpss-20240626.xsd (EX-101.SCH) — 3KB
• cpss-20240626_lab.xml (EX-101.LAB) — 34KB
• cpss-20240626_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 June 26, 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-C (the "Trust"), approximately $319.85 million of subprime automotive receivables (the "Initial Receivables"). Subsidiary also committed to purchase and to sell to the Trust, and CPS committed to sell to Subsidiary, an additional $140.15 million of similar automotive receivables (the "Subsequent Receivables" and together with the Initial 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 June 26, 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 Initial Receivables to Subsidiary, and committed to sell the Subsequent Receivables to Subsidiary not later than August 9, 2024, (ii) Subsidiary sold the Initial Receivables to the Trust, and committed to sell the Subsequent Receivables to the Trust, (iii) the Trust deposited the Initial Receivables, and committed to deposit the Subsequent 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 $436.31 million of asset-backed Notes, in five classes (such Notes collectively, the "Notes"), (vi) a portion of the proceeds from the sale of the Notes was pledged to CTCNA as trustee for benefit of the holders of the Notes, to be used to fund the purchase price of the Subsequent Receivables, and (vii) a cash deposit (the "Reserve Account") in the amount of 1.00% of the aggregate balance of the Initial 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

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: July 2, 2024 By: /s/ Denesh Bharwani Denesh Bharwani Executive Vice President and Chief Financial Officer Signing on behalf of the registrant 4

View Full Filing

View this 8-K filing on SEC EDGAR