Consumer Portfolio Services (CPS) announced yesterday that it has entered into a new two-year revolving credit agreement with Credit Suisse AG and Ares Agent Services L.P., according to a press release.
“We are pleased to have established this new facility and to have forged new relationships with partners such as Credit Suisse and Ares,” said Chief Executive Charles E. Bradley, Jr., said in the release. “With this transaction, we now have three revolving credit facilities with aggregate capacity of $300 million, paving the way for future growth in originations volume.”
Most recently the company entered into a $100 million warehouse credit line with affiliates of Fortress Investment Group in April, according to its latest 10-Q filed with the Securities and Exchange Commission.
Loans under the newest credit agreement with Credit Suisse will be secured by automobile receivables that CPS now holds or will purchase from dealers in the future, according to the release. The Irvine-Calif.-based auto lender may borrow on a revolving basis through November 2017, after which it will have the option to repay the outstanding loans in full or to allow them to amortize for a further two-year period.
During the third quarter of 2015, CPS purchased $287.5 million of new contracts, up from $279.3 million in 3Q14, according to the company’s third quarter earnings. CPS’s managed receivables totaled $1.94 billion as of September 30, an increase from $1.82 billion in 2Q, and up from $1.519 billion at the same time a year prior.
