Key Highlights

• Significant Expansion: Consumer Portfolio Services, Inc. (Nasdaq: CPSS) has amended its two-year revolving credit agreement with Capital One, N.A., increasing the facility’s capacity from \$167.5 million to \$390 million.
• Effective Date: The amendment was executed on April 3, 2026.
• Collateral: Loans under this agreement are secured by automobile receivables currently held or to be acquired by CPS from dealerships.
• Revolving Period: CPS may borrow on a revolving basis through October 17, 2027.
• Repayment Options: After the revolving period, CPS can either repay outstanding loans in full or allow them to amortize over an eighteen-month period.

Details for Investors

Consumer Portfolio Services, Inc., an independent specialty finance company, announced a major expansion of its revolving credit facility with Capital One, N.A. and the subordinate lender. The total capacity of this facility has more than doubled, rising from \$167.5 million to \$390 million. This increase gives CPS a significantly enhanced ability to fund its indirect automobile financing business, which is focused on providing loans to individuals with prior credit problems or limited credit histories.

CPS acquires retail installment sales contracts primarily from franchised automobile dealerships, secured mostly by late model used vehicles and, to a lesser extent, new vehicles. These contracts are typically funded on a long-term basis through the securitization markets, with CPS servicing the contracts for their entire duration.

The increased borrowing capacity will allow CPS to deepen its dealer relationships and potentially expand its portfolio, supporting future growth. The company may continue to access this revolving facility until October 17, 2027, providing ample flexibility to manage its capital needs. After this period, CPS will have the option to either repay the outstanding balance in full or let it amortize over 18 months.

Important Information for Shareholders

• Potential Share Price Impact: The substantial increase in credit facility capacity is likely to be viewed positively by investors, as it signals confidence from the company’s lenders and provides greater financial flexibility. This development could be a catalyst for share price movement, particularly if CPS leverages this increased capacity to grow its portfolio and earnings.
• Risks and Considerations: The company cautions that the expected benefits from this facility are subject to certain risks. Defaults or adverse events (such as poor receivables performance, increased consumer bankruptcies, changes in consumer credit regulations, or negative economic conditions) may cause the revolving period to end prematurely or accelerate loan maturity. These risks should be carefully considered by investors.

Forward-Looking Statements

CPS notes that while it expects to continue borrowing under the facility through October 2027, future losses or adverse events could result in early termination or acceleration of the loan maturity. Key contributors to such risks include deteriorating performance in the loan portfolio, macroeconomic factors, changes in regulations, or a concentration of negative events in certain geographic markets.

Contact Information

For further investor inquiries, please contact:
Danny Bharwani, EVP / Chief Financial Officer
Phone: 949-753-6811

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their personal circumstances before making any investment decisions. The information provided is based on company disclosures as of April 2026 and may be subject to change.

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