SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 7, 2006
CONSUMER PORTFOLIO SERVICES, INC.
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(Exact Name of Registrant as Specified in Charter)
CALIFORNIA 001-14116 33-0459135
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
16355 Laguna Canyon Road, Irvine, CA 92618
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (949) 753-6800
Not Applicable
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On December 7, 2006, the registrant, Consumer Portfolio Services, Inc. ("CPS")
and its wholly owned subsidiary Folio Funding LLC ("Borrower") entered into
agreements with NewStar Financial Inc. as administrative agent and as a lender,
with other financial institutions as additional lenders (together with the
administrative agent, collectively, the "Lenders"), and with Wells Fargo Bank,
National Association as collateral agent and paying agent. Such agreements
collectively constitute a revolving residual credit facility.
Under this facility, CPS has sold and intends to sell eligible residuals to the
Borrower, which in turn has pledged and intends to pledge the residuals as
collateral for floating rate borrowings from the Lenders. The amount that may be
borrowed is computed by the administrative agent using an agreed valuation
methodology of the residuals, subject to an overall maximum principal amount
that may be borrowed of $35 million. The facility's revolving feature is to
expire by its terms on December 5, 2008; any borrowings outstanding at that time
are to be repaid by the application thereto of substantially all cash released
by the pledged residual interests, and in all events over an amortization period
of no more than five years. CPS has guaranteed ten percent of any indebtedness
incurred or to be incurred under this facility.
ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.
The information provided in response to item 1.01 is incorporated herein by
reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
Neither financial statements nor pro forma financial information are filed with
this report. The following exhibit is filed with this report:
ITEM 99.1 News Release dated December 7, 2006 re $35 million residual
credit facility.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
CONSUMER PORTFOLIO SERVICES, INC.
Dated: December 13, 2006 By: /s/ ROBERT E. RIEDL
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Robert E. Riedl
Sr. Vice President
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