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4. Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

(4) Debt

The terms and amounts of our other debt outstanding at September 30, 2018 and December 31, 2017 are summarized below:

						Amount Outstanding at
						September 30,				December 31,
						2018				2017
						(In thousands)
Description		Interest Rate		Maturity

Warehouse lines of credit		5.50% over one month Libor (Minimum 6.50%)		April 2019		$	79,438			$	25,629

		3.00% over one month Libor (Minimum 4.5%)		September 2020			38,241				77,546

		6.75% over a commercial paper rate (Minimum 7.75%)		November 2019			11,599				11,100

Residual interest financing		8.60%		January 2026			40,000				–

Subordinated renewable notes		Weighted average rate of 8.31% and 7.99% at September 30, 2018 and December 31, 2017, respectively		Weighted average maturity of August 2020 and March 2020 at September 30, 2018 and December 31, 2017, respectively			16,948				16,566

						$	186,226			$	130,841

On September 21, 2018, we renewed our $100 million warehouse credit line that was first established in May 2012. There was $38.2 million outstanding under this facility at September 30, 2018. The revolving period for this facility was extended to September 2020 followed by an amortization period through September 2021 for any receivables pledged at the end of the revolving period.

On May 16, 2018, we completed a $40 million securitization of residual interests from previously issued securitizations. In this residual interest financing transaction, qualified institutional buyers purchased $40.0 million of asset-backed notes secured by residual interests in thirteen CPS securitizations consecutively conducted from September 2013 through December 2016, and an 80% interest in a CPS affiliate that owns the residual interests in the four CPS securitizations conducted in 2017. The sold notes (“2018-1 Notes”), issued by CPS Auto Securitization Trust 2018-1, consist of a single class with a coupon of 8.595%.

The agreed valuation of the collateral for the 2018-1 Notes is 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. With respect to the securitizations conducted by CPS in 2017, only 80% of such amounts are included in the collateral. On each monthly payment date, the 2018-1 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 $987,000 have been excluded from the amount reported above for residual interest financing. Similarly, unamortized debt issuance costs of $1.6 million and $1.9 million as of September 30, 2018 and December 31, 2017, respectively, have been excluded from the Warehouse lines of credit amounts in the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the debt on our Unaudited Condensed Consolidated Balance Sheets.