Consumer Portfolio Services Inc. (NASDAQ: CPSS) Tuesday announced that it has completed the securitization of $310 million of its automobile receivables.

CPS Auto Receivables Trust 1998-4 issued five classes of notes with interest rates ranging from 5.473% to 5.890%. The A-1 class of notes is rated A-1+ by Standard & Poor’s and P-1 by Moody’s Investors Service Inc. The remaining classes are all rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service Inc. Full and timely payment of interest on and principal of the notes is guaranteed by an insurance policy issued by Financial Security Assurance Inc. First Union Capital Markets managed the offering of the notes.

In addition, the company reported that it was entered into an agreement with General Electric Capital Corp. for a $100 million revolving warehouse line of credit. Borrowings under the line will be secured by automobile contracts pending their sale through a securitization. This new facility coincides with the termination on Nov. 30, 1998 of a similar facility that was provided by an affiliate of General Electric Capital Corp.

“This securitization represents our 21st triple A rated transaction since 1994, and is our largest to date. Although spreads for asset backed securities have widened considerably since our previous transaction in July 1998, the various benchmarks by which our notes are priced are much lower. As a result, the interest rates on these notes are somewhat less than the notes issued in July. We are also pleased to announce that we will be continuing our long relationship with General Electric Capital Corp. in the form of the new warehouse line of credit,” reported Charles E. Bradley, Jr., President and Chief Executive Officer.

“These important transactions along with the proceeds from the $25 million subordinated notes issued on November 17, 1998 to Levine Leichtman Capital Partners II, L.P., and our commitment from Financial Security Assurance Inc. for our next securitization represent a foundation from which CPS can achieve its goal of being a leading player in the sub-prime automobile finance industry,” Bradley continued.

Consumer Portfolio Services purchases, sells and services retail installment sales contracts originated predominantly by franchised dealers for new and late model used cars. The company purchases contracts from approximately 4,000 dealers in 41 states and services contracts in 49 states.

This news release includes forward-looking statements. Actual results may be adversely affected by various factors including the following: increases in unemployment or other changes in domestic economic conditions which adversely affect the sales of new and used automobiles and may result in increased delinquencies, foreclosures and losses on receivables; increases in interest rates, which could increase the company’s cost of funds; the reduction or unavailability of warehouse lines of credit or adverse changes in the market for securitized receivables pools, either of which could restrict the company’s ability to obtain cash for receivables purchases; increases in the amounts required to be set aside or to be expended for credit enhancement to support future securitizations; increased competition from other automobile finance sources; reduction in the number and amount of acceptable contracts submitted to the company by its automobile dealer network; changes in government regulations affecting consumer credit; and other economic, financial and regulatory factors beyond the company’s control.

CONTACT: Consumer Portfolio Services Inc., 949.753.6800

Reprinted from Business Wire with the permission of Consumer Portfolio Services, Inc. December 8, 1998.