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Debt | 12 Months Ended
--- | ---
Dec. 31, 2024
Debt Disclosure [Abstract] |
Debt | (6) Debt The terms of our debt outstanding at December 31, 2024 and 2023 are summarized below:
Schedule of debt outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Amount Outstanding at |
|  |  |  |  |  |  |  | December 31, |  |  | December 31, |
|  |  |  |  |  |  |  | 2024 |  |  | 2023 |
|  |  |  | Subordinate Lender |  |  |  | (In thousands) |
Description |  | Interest Rate |  | Interest Rate |  | Maturity |  |  |  |  |  |
Warehouse line of credit |  | 2.85% over CP yield rate (Minimum 3.60%) 7.52% and 8.58% at December 31, 2024 and December 31 2023, respectively |  | 6.40% over SOFR yield rate (Minimum 7.15%) 11.09% at December 31, 2024 |  | July 2026 |  | $ | 269,602 |  |  | $ | 165,628 |
Warehouse line of credit |  | 4.50% over a commercial paper rate (Minimum 7.50%) 8.90% and 9.63% at December 31 2024, and December 31 2023, respectively |  |  |  | March 2026 |  |  | 145,597 |  |  |  | 68,997 |
Residual interest financing |  | 7.86% |  |  |  | June 2026 |  |  | 50,000 |  |  |  | 50,000 |
Residual interest financing |  | 11.50% |  |  |  | March 2029 |  |  | 50,000 |  |  |  | – |
Subordinated renewable notes |  | Weighted average rate of 9.24% and 8.45% at December 31, 2024 and December 31, 2023, respectively |  |  |  | Weighted average maturity of December 2026 and February 2026 at December 31, 2024 and December 31, 2023, respectively |  |  | 26,489 |  |  |  | 17,188 |
|  |  |  |  |  |  |  | $ | 541,688 |  |  | $ | 301,813 |
Debt issuance costs of $4.3 million and $599,000 as of December 31, 2024 and December 31, 2023, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Warehouse lines of credit and residual interest financing on our Consolidated Balance Sheets. On May 11, 2012, we entered into a $100 million one-year warehouse credit line with Citibank, N.A. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Eight Funding, LLC. On July 15, 2022, we renewed our two-year revolving credit agreement with Citibank, N.A., and doubled the capacity from $100 million to $200 million. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Eight Funding, LLC. The facility provides for effective advances up to 95.00% of eligible finance receivables. The Class A loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the CP Cost of Funds Rate plus 2.85% per annum, with a minimum rate of 3.60% per annum and during the amortization period at a per annum rate equal to the CP Cost of Funds Rate plus 3.85% per annum, with a minimum rate of 4.60% per annum. In July 2024, this facility was amended to extend the revolving period to July 2026 and to include an amortization period through July 2027 for any receivables pledged to the facility at the end of the revolving period. In November 2024, we closed a revolving credit agreement with Oaktree Capital Management, which was subordinate to our credit agreement with Citibank, N.A., and with a $25 million credit capacity. The facility provides effective advances up to 10.00% of eligible finance receivables. The Class B loans under the facility generally accrue interest during the revolving period at a per annum rate equal to the Adjusted Term SOFR plus 6.40% per annum, with a minimum rate of 7.15% per annum and during the amortization period at a per annum rate equal to the Adjusted Term SOFR plus 7.40% per annum, with a minimum rate of 8.15% per annum. In December 2024, we increased the capacity to $335 million. At December 31, 2024 there was $269.6 million outstanding under this facility. On February 2, 2022, we renewed our two-year revolving credit agreement with Ares Agent Services, L.P. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Nine Funding, LLC. The facility provides for effective advances up to 85.25% of eligible finance receivables. The loans under the facility accrue interest at a commercial paper rate plus 4.50% per annum, with a minimum rate of 7.50% per annum. In June 2022, we increased the capacity of our credit agreement with Ares Agent Services, L.P. from $100 million to $200 million. This facility was most recently renewed in March 2024, extending the revolving period to March 2026 followed by an amortization period through March 2028 for any receivables pledged to the facility at the end of the revolving period. At December 31, 2024 there was $145.6 million outstanding under this facility. The total outstanding debt on our two warehouse lines of credit was $415.2 million as of December 31, 2024, compared to $234.6 million outstanding as of December 31, 2023. On June 30, 2021, we completed a $50 million securitization of residual interests from previously issued securitizations. In this residual interest financing transaction, qualified institutional buyers purchased $50.0 million of asset-backed notes secured by residual interests in eleven CPS securitizations consecutively issued from January 2018 and September 2020. The sold notes (“2021-1 Notes”), issued by CPS Auto Securitization Trust 2021-1, consist of a single class with a coupon of 7.86%. At December 31, 2024 there was $50.0 million outstanding under this facility. On March 22, 2024, we completed a $50 million securitization of residual interests from previously issued securitizations. In the transaction, a qualified institutional buyer purchased $50.0 million of asset-backed notes secured by an 80% interest in a CPS affiliate that owns the residual interests in five CPS securitizations issued from January 2022 through January 2023. The sold notes (“2024-1 Notes”), issued by CPS Auto Securitization Trust 2024-1, consist of a single class with a coupon of 11.50%. At December 31, 2024 there was $50.0 million outstanding under this facility. The agreed valuation of the collateral for the 2021-1 and 2024-1 Notes are 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. On each monthly payment date, the 2021-1 and 2024-1 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 $824,000 and $125,000 as of December 31, 2024 and December 31, 2023, respectively, have been excluded from the amount reported above for residual interest financing. These debt issuance costs are presented as a direct deduction to the carrying amount of the debt on our Consolidated Balance Sheets. We must comply with certain affirmative and negative covenants related to debt facilities, which require, among other things, that we maintain certain financial ratios related to liquidity, net worth and capitalization. Further covenants include matters relating to investments, acquisitions, restricted payments and certain dividend restrictions. See the discussion of financial covenants in Note 1. The following table summarizes the contractual and expected maturity amounts of our outstanding subordinated renewable notes as of December 31, 2024:
Schedule of contractual and expected maturity amounts of our outstanding subordinated renewable |  |  |  |
|  | Subordinated |
Contractual maturity |  | renewable |
date |  | notes |
|  |  | (In thousands) |
2025 |  | $ | 8,444 |
2026 |  |  | 5,284 |
2027 |  |  | 6,911 |
2028 |  |  | 4,648 |
2029 |  |  | 88 |
Thereafter |  |  | 1,114 |
Total |  | $ | 26,489 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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