Consumer Portfolio Services is planning its second subprime auto loan securitization of the year, according to a presale report published by Standard & Poor’s.
The $202.5 million CPS Auto Receivables Trust 2014-B will issue five classes of fixed-rate notes; S&P assigned a preliminary AA- rating to the $141 million class A notes; an A’ rating to $26.83 million of class B notes; a BBB’ rating to $18.73 million of class C notes; a BB’ rating to $10.13 million of class D notes; and a B+’ rating to $5.57 million of class E notes
Citigroup Global Markets is the underwriter.
Compared with CPS’ previous securitization, completed in March, the subordination of the class A notes in the latest deal has increased, to 30.25% from 28.50% in the previous deal. The weighted average FICO score of the loans used as collateral has increased slightly, to 569 from 566. The percentage of new vehicles has also increased to 14.8% of the pool from 7.8%. However, the percentage of loans with longer original terms, from 61-72 months, also increased to 58.3% from 50.7%.
Part of the collateral will be prefunded; CPS will sell approximately $131.4 million of loans to the securitization trust immediately and sell another $71.1 million of loans over the following 60 days.
This is CPS’ 16th since September 2010, when it issued series 2010-A, its first senior-subordinate transaction without a bond insurer, according to S&P.