Consumer Portfolio Services (CPS) closed its subprime auto ABS called Consumer Portfolio Services Auto Receivables Trust 2011-A. The $104 million deal is managed by UBS.
It is the issuer's first rated term securitization in 2011. The transaction was a privately offered. Qualified institutional buyers bought $100.36 million of ABS backed by automobile receivables purchased by CPS mostly in 2010 and 2011.
The sold notes, issued by CPS Auto Receivables Trust 2011-A, consist of four classes. Standard & Poor's rated the deal. The agency based its ratings on the offering's structure, the historical performance of similar receivables and CPS's experience as a servicer.
The weighted average effective coupon on the notes is approximately 3.77%.
The 2011-A transaction has initial credit enhancement consisting of a cash deposit equal to 2.00% of the original receivable pool balance and overcollateralization of 4.00%. The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 15% of the then-outstanding receivable pool balance.