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Securitization Trust Debt

9 Months Ended

Sep. 30, 2025

(3) Securitization Trust Debt

We have completed many securitization transactions that are structured as secured borrowings for financial accounting purposes. The debt issued in these transactions is shown on our Unaudited Condensed Consolidated Balance Sheets as “Securitization trust debt,” and the components of such debt are summarized in the following table:

Schedule of securitization trust debt
										Weighted
										Average
	Final	Receivables				Outstanding		Outstanding		Contractual Debt
	Scheduled	Pledged at				Principal at		Principal at		Interest Rate at
	Payment	September 30,		Initial		September 30,		December 31,		September 30,
Series	Date (1)	2025 (2)		Principal		2025		2024		2025
	(Dollars in thousands)
CPS 2020-C	November 2027	$	–	$	252,200	$	–	$	22,453		–
CPS 2021-A	March 2028		–		230,545		–		22,396		–
CPS 2021-B	June 2028		24,710		240,000		19,436		31,903		3.41%
CPS 2021-C	September 2028		38,935		291,000		30,814		49,739		2.89%
CPS 2021-D	December 2028		55,549		349,202		46,683		72,090		3.76%
CPS 2022-A	April 2029		63,523		316,800		49,477		77,872		3.93%
CPS 2022-B	October 2029		101,335		395,600		85,400		132,002		6.36%
CPS 2022-C	April 2030		123,463		391,600		89,070		141,176		7.32%
CPS 2022-D	June 2030		112,715		307,018		96,940		135,857		9.58%
CPS 2023-A	August 2030		137,807		324,768		96,162		146,020		7.45%
CPS 2023-B	November 2030		152,355		332,885		117,944		172,154		7.53%
CPS 2023-C	February 2031		147,251		291,732		123,154		175,219		7.26%
CPS 2023-D	May 2031		156,958		286,149		136,229		191,621		7.99%
CPS 2024-A	August 2031		167,533		280,924		145,377		206,348		6.41%
CPS 2024-B	November 2031		214,128		319,871		192,643		262,768		6.57%
CPS 2024-C	March 2032		312,286		436,310		283,539		379,254		6.33%
CPS 2024-D	June 2032		327,936		416,816		298,515		390,983		5.26%
CPS 2025-A	August 2032		384,422		442,420		354,756		–		5.49%
CPS 2025-B	March 2033		398,857		419,950		369,875		–		5.42%
CPS 2025-C	May 2033		415,633		418,330		396,919		–		5.08%
	–	$	3,335,398	$	6,744,120	$	2,932,933	$	2,609,855

_________________

(1)

The Final Scheduled Payment Date represents final legal maturity of the securitization trust debt. Securitization trust debt is expected to become due and to be paid prior to those dates, based on amortization of the finance receivables pledged to the trusts. Expected payments, which will depend on the performance of such receivables, as to which there can be no assurance, are $279.4 million in 2025, $1,055.9 million in 2026, $736.0 million in 2027, $451.5 million in 2028, $257.3 million in 2029, $116.5 million in 2030, and $19.8 million in 2031.

(2)

Includes repossessed assets that are included in other assets on our Unaudited Condensed Consolidated Balance Sheet.

Debt issuance costs of $16.5 million and $15.5 million as of September 30, 2025, and December 31, 2024, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Securitization trust debt on our Consolidated Balance Sheets.

All the securitization trust debt was sold in private placement transactions to qualified institutional buyers. The debt was issued through our wholly owned bankruptcy remote subsidiaries and is secured by the assets of such subsidiaries, but not by our other assets.

The terms of the various securitization agreements related to the issuance of the securitization trust debt require that certain delinquency and credit loss criteria be met with respect to the collateral pool and require that we maintain minimum levels of liquidity and net worth and not exceed maximum leverage levels. We followed all such covenants as of September 30, 2025.

We are responsible for the administration and collection of the contracts. The securitization agreements also require certain funds be held in restricted cash accounts to provide additional credit enhancement for the Notes or to be applied to make payments on the securitization trust debt. As of September 30, 2025, restricted cash under the various agreements totaled approximately $142.5 million. Interest expense on the securitization trust debt is composed of the stated rate of interest plus amortization of additional costs of borrowing. Additional costs of borrowing include facility fees, insurance premiums, amortization of deferred financing costs, and amortization of discounts required on the notes at the time of issuance. Deferred financing costs related to the securitization trust debt are amortized using the interest method. Accordingly, the effective cost of borrowing of the securitization trust debt is greater than the stated rate of interest.

Our wholly owned, bankruptcy remote subsidiaries were formed to facilitate the above asset-backed financing transactions. Similar bankruptcy remote subsidiaries issue the debt outstanding under our warehouse line of credit. Bankruptcy remote refers to a legal structure in which it is expected that the applicable entity would not be included in any bankruptcy filing by its parent or affiliates. All of the assets of these subsidiaries have been pledged as collateral for the related debt. All such transactions, treated as secured financing for accounting and tax purposes, are treated as sales for all other purposes, including legal and bankruptcy purposes. None of the assets of these subsidiaries are available to pay any of our other creditors.