CPS raises credit facility capacity to $390 million from $167.5 million

Consumer Portfolio Services Inc. (NASDAQ: CPSS) amended its revolving credit agreement with Capital One N.A. on April 3, increasing the facility capacity from $167.5 million to $390 million, according to a company statement.

The amendment affects both Capital One N.A. and a subordinate lender. The two-year revolving credit agreement allows CPS to borrow against automobile receivables through October 17, 2027. After this date, the company can either repay outstanding loans in full or allow them to amortize over an 18-month period.

The loans remain secured by automobile receivables that CPS currently holds or will acquire from dealers. Consumer Portfolio Services specializes in providing indirect automobile financing to individuals with past credit problems or limited credit histories.

The company purchases retail installment sales contracts primarily from franchised automobile dealerships, with contracts secured by late model used vehicles and some new vehicles. CPS funds these purchases through securitization markets and services the contracts throughout their terms.

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