CONSUMER PORTFOLIO SERVICES, INC. Debt Disclosure

(6) Debt

 

The terms of our debt outstanding at December 31, 2025, and 2024 are summarized below:

Schedule of debt outstanding
								Amount Outstanding at
								December 31,				December 31,
								2025				2024
								(In thousands)
Description		Interest Rate		Subordinate Lender Interest Rate		Maturity
Warehouse lines of credit		2.85% over CP yield rate (Minimum 3.60%) 6.80% and 7.52% at December 31, 2025 and December 31 2024, respectively		6.40% over SOFR yield rate (Minimum 7.15%) 10.40% and 11.09% at December 31, 2025 and December 31, 2024, respectively		July 2026		$	197,107			$	269,602
Warehouse lines of credit		4.50% over a commercial paper rate (Minimum 7.50%) 8.25% and 8.90% at December 31 2025, and December 31 2024, respectively				March 2026			11,778				145,597
Warehouse lines of credit		2.75% over SOFR yield rate (Minimum 3.00%) 6.50% at December 31, 2025		6.40% over SOFR yield rate (Minimum 6.65%) 10.27% at December 31, 2025		October 2027			118,323				–
Residual interest financing		7.86%				June 2026			31,163				50,000
Residual interest financing		11.50%				March 2029			49,820				50,000
Residual interest financing		11.00%				June 2032			63,524				–
Subordinated renewable notes		Weighted average rate of 8.98% and 9.24% at December 31, 2025 and December 31, 2024, respectively				Weighted average maturity of November 2027 and December 2026 at December 31, 2025 and December 31, 2024, respectively			28,986				26,489
								$	500,701			$	541,688

 

Debt issuance costs of $3.9 million and $5.1 million as of December 31, 2025, and December 31, 2024, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Warehouse lines of credit and residual interest financing on our Consolidated Balance Sheets.

 

On May 11, 2012, we entered into a $100 million one-year warehouse credit line with Citibank, N.A. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Eight Funding, LLC. On July 15, 2022, we renewed our two-year revolving credit agreement with Citibank, N.A., and doubled the capacity from $100 million to $200 million. The facility provides for effective advances up to 95.00% of eligible finance receivables. The Class A loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the CP Cost of Funds Rate plus 2.85% per annum, with a minimum rate of 3.60% per annum and during the amortization period at a per annum rate equal to the CP Cost of Funds Rate plus 3.85% per annum, with a minimum rate of 4.60% per annum. In July 2024, this facility was amended to extend the revolving period to July 2026 and to include an amortization period through July 2027 for any receivables pledged to the facility at the end of the revolving period. In November 2024, we closed a revolving credit agreement with Oaktree Capital Management, which is subordinate to our credit agreement with Citibank, N.A., and has a $35 million credit capacity. The facility provides effective advances up to 10.00% of eligible finance receivables. The Class B loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the Adjusted Term SOFR plus 6.40% per annum, with a minimum rate of 7.15% per annum and during the amortization period at a per annum rate equal to the Adjusted Term SOFR plus 7.40% per annum, with a minimum rate of 8.15% per annum. In December 2024, we increased the capacity to $335 million. At December 31, 2025, there was $197.1 million outstanding under this facility.

 

On November 24, 2015, we entered into a $100 million one-year warehouse credit line with affiliates of Credit Suisse Group and Ares Management LP. In June 2022, we increased the capacity of the credit agreement from $100 million to $200 million. This facility was most recently renewed, with Ares Management LP, in March 2024, extending the revolving period to March 2026 followed by an amortization period through March 2028 for any receivables pledged to the facility at the end of the revolving period. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Nine Funding, LLC. The facility provides for effective advances up to 85.25% of eligible finance receivables. The loans under the facility accrue interest at a commercial paper rate plus 4.50% per annum, with a minimum rate of 7.50% per annum. At December 31, 2025 there was $11.8 million outstanding under this facility.

 

On October 17, 2025, we entered into a $167.5 million two-year warehouse credit line with Capital One, N.A as the Class A Lender and Oaktree Asset-Backed Income Private Placement Fund Inc., as the Class B Lenders. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Eleven Funding, LLC. The facility provides for effective advances up to 95.50% of eligible finance receivables. The Class A loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the Term SOFR plus 2.75% per annum, with a minimum rate of 3.00% per annum and during the amortization period at a per annum rate equal to the Term SOFR plus 3.75% per annum, with a minimum rate of 4.00% per annum. The Class B loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the Term SOFR plus 6.40% per annum, with a minimum rate of 6.65% per annum and during the amortization period at a per annum rate equal to the Term SOFR plus 7.40% per annum, with a minimum rate of 7.65% per annum. At December 31, 2025, there was $118.3 million outstanding under this facility.

 

The total outstanding debt on our three warehouse lines of credit was $327.2 million as of December 31, 2025, compared to $415.2 million outstanding as of December 31, 2024.

 

On June 30, 2021, we completed a $50 million securitization of residual interests from previously issued securitizations. In this residual interest financing transaction, qualified institutional buyers purchased $50.0 million of asset-backed notes secured by residual interests in eleven CPS securitizations consecutively issued from January 2018 and September 2020. The sold notes (“2021-1 Notes”), issued by CPS Auto Securitization Trust 2021-1, consist of a single class with a coupon of 7.86%. At December 31, 2025, there was $31.2 million outstanding under this facility, compared to $50.0 million outstanding as of December 31, 2024.

 

On March 22, 2024, we completed a $50 million securitization of residual interests from previously issued securitizations. In the transaction, a qualified institutional buyer purchased $50.0 million of asset-backed notes secured by an 80% interest in a CPS affiliate that owns the residual interests in five CPS securitizations issued from January 2022 through January 2023. The sold notes (“2024-1 Notes”), issued by CPS Auto Securitization Trust 2024-1, consist of a single class with a coupon of 11.50%. At December 31, 2025, there was $49.8 million outstanding under this facility, compared to $50.0 million outstanding as of December 31, 2024.

 

On March 20, 2025, we completed a $65 million securitization of residual interests from previously issued securitizations. In the transaction, a qualified institutional buyer purchased $65.0 million of asset-backed notes secured by an 80% interest in a CPS affiliate that owns the residual interests in five CPS securitizations issued from October 2023 through September 2024. The sold notes (“2025-1 Notes”), issued by CPS Auto Securitization Trust 2025-1, consist of a single class with a coupon of 11.00%. At December 31, 2025, there was $63.5 million outstanding under this facility.

 

The agreed valuation of the collateral for the 2021-1, 2024-1, and 2025-1 Notes are the sum of the amounts on deposit in the underlying spread accounts for each related securitization and the over-collateralization of each related securitization, which is the difference between the outstanding principal balances of the related receivables less the principal balance of the outstanding notes issued in the related securitization. On each monthly payment date, the 2021-1, 2024-1, and 2025-1 Notes are entitled to interest at the coupon rate and, if necessary, a principal payment necessary to maintain a specified minimum collateral ratio.

 

Unamortized debt issuance costs of $1.5 million and $824,000 as of December 31, 2025, and December 31, 2024, respectively, have been excluded from the amount reported above for residual interest financing. These debt issuance costs are presented as a direct deduction to the carrying amount of the debt on our Consolidated Balance Sheets.

 

We must comply with certain affirmative and negative covenants related to debt facilities, which require, among other things, that we maintain certain financial ratios related to liquidity, net worth and capitalization. Further covenants include matters relating to investments, acquisitions, restricted payments and certain dividend restrictions. See the discussion of financial covenants in Note 1.

 

The following table summarizes the contractual and expected maturity amounts of our outstanding subordinated renewable notes as of December 31, 2025:

Schedule of contractual and expected maturity amounts of our outstanding subordinated renewable
		Subordinated
Contractual maturity		renewable
date		notes
			(In thousands)
2026		$	8,457
2027			8,547
2028			5,525
2029			5,343
2030.			183
Thereafter			931
Total		$	28,986