IRVINE, Calif. — Consumer Portfolio Services Inc. (CPS) has announced the completion of a structured whole-loan sale last Friday. The company sold $198.7 million worth of automobile purchase receivables.
In the transaction, an affiliate of Citigroup purchased 95 percent of structured notes backed by automotive purchase receivables, while CPS purchased the remaining 5 percent. A portion of the cash proceeds were used to repay outstanding warehouse indebtedness. CPS also retained a shared participation in the future performance of the sold receivables.
"While the securitization market remains challenging, we are pleased to have completed this transaction," said Charles E. Bradley, Jr., the company's chairman/CEO. "Being able to access liquidity in this difficult market environment is a testament to the platform we have built over the last few years."
CPS noted that the sale of notes was a private offering of securities, not registered under the Securities Act of 1933 or any state securities law. All such securities having been sold, their announcement was made as a matter of record only.