Securitization Trust Debt

3 Months Ended

Mar. 31, 2026

Securitization Trust Debt

Securitization Trust Debt

(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:

										Weighted Average
	Final Scheduled Payment	Receivables Pledged at March 31,		Initial		Outstanding Principal at March 31,		Outstanding Principal at December 31,		Contractual Debt Interest Rate at March 31,
Series	Date (1)	2026 (2)		Principal		2026		2025		2026
	(Dollars in thousands)
CPS 2021-B	June 2028	$	–	$	240,000	$	–	$	15,832		–
CPS 2021-C	September 2028		26,532		291,000		20,877		25,889		3.21%
CPS 2021-D	December 2028		38,630		349,202		32,336		39,625		4.06%
CPS 2022-A	April 2029		44,831		316,800		35,580		42,241		4.35%
CPS 2022-B	October 2029		73,489		395,600		60,999		72,820		6.91%
CPS 2022-C	April 2030		90,856		391,600		65,899		77,073		7.84%
CPS 2022-D	June 2030		88,079		307,018		77,684		86,973		10.05%
CPS 2023-A	August 2030		110,909		324,768		72,286		83,896		8.09%
CPS 2023-B	November 2030		123,672		332,885		96,290		107,035		7.92%
CPS 2023-C	February 2031		120,818		291,732		98,403		110,281		7.53%
CPS 2023-D	May 2031		126,518		286,149		107,460		121,208		8.28%
CPS 2024-A	August 2031		133,029		280,924		112,509		128,466		6.64%
CPS 2024-B	November 2031		173,674		319,871		152,694		171,992		6.74%
CPS 2024-C	March 2032		254,942		436,310		226,459		254,043		6.45%
CPS 2024-D	June 2032		268,918		416,816		240,262		269,169		5.35%
CPS 2025-A	August 2032		319,783		442,420		291,983		324,242		5.64%
CPS 2025-B	March 2033		341,428		419,950		313,883		341,383		5.54%
CPS 2025-C	May 2033		360,778		418,330		337,260		364,711		5.15%
CPS 2025-D	May 2033		352,083		384,600		335,664		366,313		5.18%
CPS 2026-A	August 2033		339,580		345,610		330,081		–		4.74%
		$	3,388,549	$	6,991,585	$	3,008,609	$	3,003,192

 ________________

(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 $915.9 million in 2026, $914.6 million in 2027, $563.5 million in 2028, $337.9 million in 2029, $182.1 million in 2030, $65.9 million in 2031, and $12.3 million in 2032.

(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 $16.6 million as of March 31, 2026, and December 31, 2025, 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 are in compliance with all such covenants as of March 31, 2026.

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 March 31, 2026, restricted cash under the various agreements totaled approximately $178.5 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.