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Debt
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Debt

(4) Debt

 

The terms and amounts of our other debt outstanding at September 30, 2025, and December 31, 2024, are summarized below:

                   
            Amount Outstanding at 
            September 30,   December 31, 
            2025   2024 
            (In thousands) 
Description  Interest Rate  Subordinate Lender Interest Rate  Maturity        
Warehouse lines of credit  2.85% over CP yield rate (Minimum 3.75%) 7.18% and 7.52% at September 30, 2025 and December 31 2024, respectively  6.40% over SOFR yield rate (Minimum 7.15%) 10.78% and 11.09% at September 30, 2025 and December 31, 2024, respectively  July 2026  $291,217   $269,602 
                    
Warehouse lines of credit  4.50% over a commercial paper rate (Minimum 7.50%) 8.65% and 8.90% at September 30 2025, and December 31 2024, respectively     March 2026   51,685    145,597 
                    
Residual interest financing  7.86%     June 2026   36,490    50,000 
                    
Residual interest financing  11.50%     March 2029   49,988    50,000 
                    
Residual interest financing  11.00%     June 2032   64,632    – 
                    
Subordinated renewable notes  Weighted average rate of 8.99% and 9.24% at September 30, 2025 and December 31, 2024, respectively     Weighted average maturity of October 2027 and December 2026 at September 30, 2025 and December 31, 2024, respectively   28,589    26,489 
            $522,601   $541,688 

 

On March 20, 2025, we completed a $65 million securitization of residual interests from previously issued securitizations. In the transaction, a qualified institutional buyer purchased $65.0 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 October 2023 through September 2024. The sold notes (“2025-1 Notes”), issued by CPS Auto Securitization Trust 2025-1, consist of a single class with a coupon of 11.00%. At September 30, 2025, there was $64.6 million outstanding under this facility.

 

On December 19, 2024, we increased the capacity of our revolving credit agreement with Citibank, N.A., to $335 million. This follows the November 2024 closing of a revolving credit agreement with Oaktree Capital Management, which is subordinate to our credit agreement with Citibank, N.A. The facility provides effective advances up to 10.00% of eligible finance receivables, effectively increasing the advance rate up to 95% across the facility for eligible receivables. The revolving credit agreement with Citibank, N.A. was last renewed in July 2024, extending the maturity date to July 2026 followed by an amortization period through July 2027 for any receivables pledged at the end of the revolving period. There was $291.2 million outstanding under this facility at September 30, 2025.

 

On March 29, 2024, we renewed our two-year $200 million revolving credit agreement with Ares Agent Services, L.P. The revolving period for this facility was extended to March 2026 followed by an amortization period through March 2028 for any receivables pledged at the end of the revolving period. There was $51.7 million outstanding under this facility at September 30, 2025.

 

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 September 30, 2025, there was $50.0 million outstanding under this facility.

 

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 September 30, 2025, there was $36.5 million outstanding under this facility.

 

Unamortized debt issuance costs of $1.6 million and $824,000 as of September 30, 2025, and December 31, 2024, respectively, have been excluded from the amount reported above for residual interest financing. Similarly, unamortized debt issuance costs of $2.3 million and $4.3 million as of September 30, 2025, and December 31, 2024, 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.