Consumer Portfolio Services said today it closed on its fourth subprime auto loan securitization of the year. The transaction, CPS Auto Receivables Trust 2012-D, issued a total of $166 million of notes in five classes.
A $122.4 million A class with an average life of 1.75 years and a fixed interest rate of 1.48% priced at 99.98791%; it is rated A2 by Moody’s Investors Service and AA- by Standard & Poor’s.
A $14.4 million B class with an average life of 1.93 years and an interest rate of 1.94% priced at 99.98668%; it is rated A2 by Moody’s and A by S&P.
A $9.6 million C class with an average of 2.68 years and an interest rate of 2.64% priced at 99.99637%. It is rated Baa2/BBB+.
An $8.0 million D class with an average life of 2.32 year and an interest rate of 4.82% priced at 99.98014%; it is rated Ba2/BB.
A $5.6 million E class with an average life of 1.88 years and an interest rate of 7.26% priced at 99.99292%; it is rated B1/BB-
The weighted average effective coupon on the notes is approximately 2.06%.
The 2012-D transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance. The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 11.50% of the then-outstanding receivable pool balance.
The transaction uses a pre-funding structure: CPS sold approximately $115.0 million of receivables today and plans to sell approximately $45.0 million of additional receivables during January 2013. This further sale is intended to provide CPS with long-term financing for receivables purchased primarily in the month of December. The transaction also included $10.7 million of receivables originally originated by CPS in 2007 that were recently repurchased from a securitization transaction that closed in 2007.
The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law.