New Issue: Consumer Portfolio Services gets $50 million revolving credit agreement

By Devika Patel

Knoxville, Tenn., Oct. 1 - Consumer Portfolio Services, Inc. completed a $50 million two-year revolving credit agreement with Fortress Credit Corp. on Sept. 25, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The revolver will bear interest at a floating rate equal to one-month Libor plus 1,200 basis points, but in all events no less than 14% per year.

Fortress also received a warrant for 1,158,087 shares, which is exercisable at $0.879 per share until Sept. 25, 2019.

Consumer Portfolio Services, based in Irvine, Calif., is a specialty finance company engaged in purchasing and servicing new and used retail automobile contracts.

Issuer:	Consumer Portfolio Services, Inc.
Issue:	Revolving credit agreement
Amount:	$50 million
Maturity:	Two years
Coupon:	One-month Libor plus 1,200 bps, with floor of 14% per year
Price:	Par
Warrants:	For 1,158,087 shares
Warrant expiration:	Sept. 25, 2019
Warrant strike price:	$0.879
Investor:	Fortress Credit Corp.
Settlement date:	Sept. 25
Stock symbol:	Nasdaq: CPSS
Stock price:	$0.88 at close Sept. 25
Market capitalization:	$21.4 million

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