CPS Announces Renewal and Doubling of its Credit Facility | National
LAS VEGAS, Nevada, July 15 10, 2022 (GLOBE NEWSWIRE) — Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced the renewal of its two-year revolving credit agreement with Citibank, NA, and doubled the capacity from $100 million to $200 million.
Loans under the renewed credit agreement will be secured by auto receivables that CPS currently holds, will source directly, or will purchase from dealerships in the future. CPS can borrow on a revolving basis until July 15, 2024, after which CPS will have the option of repaying outstanding loans in full or allowing them to amortize over a period of one year.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automotive financing for people with credit issues, low incomes, or limited credit histories. We purchase installment retail contracts primarily from franchised automobile dealerships backed by late model used vehicles and, to a lesser extent, new vehicles. We finance these purchases of long-term contracts primarily through the securitization markets and manage the contracts throughout their life.
Forward-looking statements in this press release include the Company’s expectation that the revolving period will extend over two years and that an amortization period may follow. The revolving credit agreement amended and renewed on July 15, 2022 provides for both a revolving period and an amortization period to follow, but it is possible that the Company may suffer certain defaults or events of default which would terminate the revolving period. revolving or lead to an acceleration of the maturity of the loan granted. Generally, such defaults or events of default would result from losses that the Company may incur in the future. In turn, these losses could result from the poor performance of receivables acquired or to be acquired by the Company, from the increase in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from his wallet ; changes in government regulations affecting consumer credit; or adverse economic conditions, either generally or in geographic areas in which the Company’s activities are concentrated.
Jeffrey P. Fritz, Chief Financial Officer
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