Consumer Portfolio Services, Inc. Amends Revolving Credit Facility, Increasing Capacity to $335 Million

Consumer Portfolio Services, Inc. (NASDAQ: CPSS) recently announced the amendment of its revolving credit agreement with Citibank, N.A., reflecting an increase in the facility’s capacity from $225 million to $335 million. The amendment, effective December 16, 2024, extends this two-year revolving credit agreement, providing flexibility for the company’s financial operations.

The credit facility amendments involve Consumer Portfolio Services, Inc. (“CPS”) and its wholly-owned subsidiary, Page Eight Funding LLC, the Borrower. These agreements have been in effect since May 2012, with the most recent renewal taking place on July 11, 2024. Citibank, N.A. serves as the agent representing the multiple lenders (“Lenders”) associated with the Credit Agreement.

Loans under this amended agreement will be backed by automobile receivables currently held by CPS or those to be obtained in the future from dealers. These receivables will be sold or contributed to the Borrower, further enhancing the financial groundwork of the arrangements.

This updated Credit Agreement allows the Lenders to increase credit capacity up to $335 million, an increase from the previous $225 million, until the funding termination date of July 15, 2026. The advance percentage will vary based on factors such as pledged receivables’ characteristics and the performance of these receivables acquired within the preceding three years.

Interest rates for the loans under this Credit Agreement will float at a margin above the secured overnight financing rate. As part of this amendment, CPS paid a closing fee of approximately $880,000 to cover associated expenses.

It’s noteworthy that affiliates of Citibank, N.A. have also provided investment banking and advisory services for CPS, receiving standard fees and expenses for their services. The Link to EX-99.1 link to external page was the news release re the amendment of the credit facility.. Consumer Portfolio Services, Inc. holds an established position as an independent specialty finance company offering indirect automobile financing solutions to individuals with past credit challenges or limited credit histories.

In summary, the amendment to the revolving credit agreement signifies a strategic move by Consumer Portfolio Services, Inc., expanding financial capabilities and strengthening relationships within the financial sector.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Consumer Portfolio Services’s 8K filing here.

Consumer Portfolio Services Company Profile

Consumer Portfolio Services, Inc operates as a specialty finance company in the United States. It is involved in the purchase and service of retail automobile contracts originated by franchised automobile dealers and select independent dealers in the sale of new and used automobiles, light trucks, and passenger vans.