CPS Announces Increased Capabilities in Credit Facility with Investing.com
LAS VEGAS, Nevada, Dec. 19, 2024 (GLOBE NEWSWIRE) — Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (CPS or the Company) today announced that on December 16, 2024, it has modified its two-year debt agreement with Citibank, NA to expand the facility’s capacity. The amendment also applies to third-party lenders, which were announced last month. The amendment increases the facility’s capacity from $225 million to $335 million.
Loans under the amended credit agreement will continue to be secured by the receivables of vehicles that CPS currently owns or will acquire from dealers in the future. CPS may make revolving loans until July 15, 2026, after which CPS will have the option of paying off the outstanding loan in full or allowing it to amortize for one year.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is a private finance company specialized in providing indirect car financing to people with past credit problems or a limited credit history. We purchase installment sales contracts primarily from car dealerships that have a secured concession for late used cars and, to a lesser extent, new cars. We fund these long-term contract purchases through the securities markets and service the contracts for their lifetime.
Forward-looking statements in this news release include the Company’s expectation that the variable period will extend to the end of the cycle period, and that a settlement period may follow. The revolving credit agreement, which was amended on December 16, 2024, provides for both a flexible term and an amortization period to follow, but it is possible that the Company may experience certain defaults or events of default that may shorten the term to accelerate the maturity of the extended credit. Generally, such default or events of default may result from losses that the Company may incur in the future. Subsequently, such losses may be attributed to the poor performance of the receivables received or to be received by the Company, from the increase in the level of deposits of consumers, which may adversely affect the rights of the Company to collect payments on its portfolio; to changes in government laws affecting consumer credit; or in adverse economic conditions, generally or in areas where the Company’s business is concentrated.
Investor Contacts
Danny Bharwani, EVP/ Chief Financial Officer
949-753-6811
Source: Consumer Portfolio Services, Inc.
