Consumer Portfolio Services is working on its second subprime auto securitization of the year, according to Moody’s Investors Service.
Citigroup is the lead underwriter on the $185 million transaction, according to the presale report.
The deal consists of five tranches due September 2020. The $158 million senior tranche has a preliminary ‘A1’rating by Moody’s, the same rating as the senior tranche on CPS’ previous subprime auto securitization in March. It benefits from 22.75% initial overcollateralization and subordination.
Unlike CPS’ previous deal, approximately 31% of the collateral backing the transaction is being prefunded. The trust will initially be backed by $141 million of auto loans; CPS will sell another $64 million of receivables to the trust within 60 days of closing.