Consumer Portfolio Services priced $180 million of bonds backed by subprime auto loans, its first securitization of 2014.

Citibank is lead manager on the deal, CPS Auto Receivables Trust 2014-A. It issued five classes of notes with a weighted average effective coupon of approximately 2.51%, according to press release published today.

The senior, $128.7 million tranche of class A notes have an average life of 1.26 years and are rated ‘AA-’ by Standard & Poor’s and ‘Aa3’ by Moody’s Investors Service; they pay interest of 1.21%.

The $20.7 million class B notes with an average life of 3.04 years and ‘A’/’A1’ ratings pay interest of 2.4%.

The $16.6 million class C notes with an average life of 3.64 years and ‘BBB’/’Baa2’ ratings pay interest of 3.29%.

The $9 million class D notes with an average life of 3.99 years and ‘BB+’/’Ba3’ ratings pay interest of 5.11%.

The $5 million class E notes with an average life of 3.99 years and ‘B+’/’B2’ ratings pay interest of 6.38%

The 2014-A 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 5.00% of the then-outstanding receivable pool balance.

Part of the collateral is prefunded; CPS sold approximately $111.2 million of receivables today and plans to sell approximately $68.8 million of additional receivables during April. “This further sale is intended to provide CPS with long-term financing for receivables purchased primarily in the month of March,” CPS stated in the press release.

According to the presale reports, the 2014-A deal is collateralized by loans with a weighted average loan-to-value ratio of 113.37%. The weighted average APR on the loans included in the pool is 20.28% and 91.21% of the loans were used to purchase used cars. The weighted average FICO score is 566.

The collateral in the 2014-A transaction has a similar LTV, APR and seasoning as lender's previous 2013-D transaction; however 2014-A has a slightly lower FICO score than the 2013-D deal.

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