Consumer Portfolio announces $100 million credit facility with Fortress

By Tali Rackner

Norfolk, Va., April 23 – Consumer Portfolio Services, Inc. entered into a $100 million two-year revolving credit agreement on April 17 with Fortress Credit Co LLC as administrative agent and collateral agent, according to a press release.

The new agreement replaces the company’s previous revolver dated December 2010.

According to an 8-K filing with the Securities and Exchange Commission, loans under the agreement bear interest at a floating rate equal to one-month Libor plus 550 basis points, but in all events no less than 650 bps per year.

Consumer Portfolio has paid a $1 million closing fee to Fortress.

The company may borrow on a revolving basis through April 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.

Consumer Portfolio Services is an Irvine, Calif.-based specialty finance company that provides indirect automobile financing to individuals with past credit problems, low incomes or limited credit histories.

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