Consumer Portfolio Gets $10 Million in Financing

Consumer Portfolio Services, Inc. (Nasdaq: CPSS ) today announced that it closed a new $10 million senior secured financing with an affiliate of Levine Leichtman Capital Partners. Consumer Portfolio purchases and serves new and used retail automobile contracts typically made to sub-prime customers, who have limited credit history, low income or past credit problems. It works with both franchised automobile dealerships and independent dealers of used automobiles.

Consumer Portfolio’s stock was up more than 15 percent in midday trading today to $1.70. Its stock fell nearly 29 percent yesterday, making it one of the largest price decliners on the Nasdaq market. It has traded as high as $6.75 in the last 52 weeks.

Los Angeles-based Levine Leichtman received in aggregate 3 million shares of common stock and warrants of onsumer Portfolio in connection with the transaction. Under the deal with Levine Leichtman, Consumer Portfolio can receive an additional $15 million in financing if certain terms and conditions are met.

Levine Leichtman manages in excess of $4.0 billion of institutional investment capital through private equity partnerships, distressed debt and leveraged loan funds. It announced it is making new investments through several of its divisions.