CONSUMER PORTFOLIO SERVICES, INC. 8-K

What Happened

• Consumer Portfolio Services, Inc. (CPS) and certain subsidiaries entered into agreements on April 22, 2026 to securitize a pool of receivables and issue $514.07 million of asset-backed notes (the “Notes”). CPS sold receivables to a subsidiary, which sold them to a trust that issued five classes of Notes secured by the receivables. Computershare Trust Company, N.A. (CTCNA) serves as trustee/collateral agent and backup servicer; CPS will act as servicer.

Key Details

• Total Notes issued: $514.07 million across five classes:
  • Class A: $237,620,000 at 4.35%
  • Class B: $76,400,000 at 4.59%
  • Class C: $78,660,000 at 4.93%
  • Class D: $48,670,000 at 5.20%
  • Class E: $72,720,000 at 7.14%
• Initial receivables pool balance: $526.17 million. A Reserve Account equal to 1.00% of the pool and 2.30% overcollateralization provide initial credit enhancement.
• Notes are obligations of the trust only (not CPS or the subsidiary) but are treated as long-term debt of CPS for accounting/tax purposes. Trust and subsidiary assets are not available to CPS’s other creditors.
• Trustee remedies: on default, trustee may accelerate Notes and redirect receivable collections to repay noteholders. CPS may be able to purchase the trust when remaining receivables fall below 10% of the original pool if proceeds suffice to redeem the Notes.

Why It Matters

• This transaction provides CPS with financing backed by a large pool of consumer receivables and establishes a $514M secured funding link to investors, while keeping the credit exposure ring-fenced in a trust structure.
• For investors, the securitization increases CPS’s long-term debt on an accounting basis and affects how receivables are funded and serviced; credit enhancement levels, interest rates, and trustee remedies are key protections for noteholders and important risk factors for equity holders.