Credit Acceptance Announces Completion of $400.0 Million Asset-Backed Financing
Credit Acceptance (Nasdaq: CACC) has completed a $400.0 million asset-backed non-recourse secured financing transaction. The company conveyed loans valued at approximately $500.2 million to a special purpose entity, which will transfer them to a trust issuing three classes of notes.
The financing features:
- Expected average annualized cost of 5.6% including fees
- 24-month revolving period followed by amortization based on conveyed loan cash flows
- 4.0% of cash flows retained for servicing expenses
- 96.0% allocated to note payments and dealer holdback
The funds will be used to repay existing debt and for general corporate purposes. The financing structure maintains existing dealer relationships and preserves dealers' rights to future holdback payments. The notes have not been registered under the Securities Act of 1933 and cannot be offered or sold in the US without registration or exemption.
Credit Acceptance (Nasdaq: CACC) ha completato una transazione di finanziamento garantito non ricorsivo supportata da attivi per un valore di 400,0 milioni di dollari. L'azienda ha trasferito prestiti del valore di circa 500,2 milioni di dollari a un'entità a scopo speciale, che li trasferirà a un fondo che emetterà tre classi di note.
Il finanziamento presenta:
- Costo medio annualizzato previsto del 5,6% inclusi i costi
- Periodo di rotazione di 24 mesi seguito da ammortamento basato sui flussi di cassa dei prestiti trasferiti
- Il 4,0% dei flussi di cassa trattenuto per le spese di gestione
- Il 96,0% destinato ai pagamenti delle note e al ritenuto dei concessionari
I fondi saranno utilizzati per ripagare debiti esistenti e per scopi aziendali generali. La struttura di finanziamento mantiene le relazioni esistenti con i concessionari e preserva i diritti dei concessionari sui futuri pagamenti di ritenuta. Le note non sono state registrate ai sensi del Securities Act del 1933 e non possono essere offerte o vendute negli Stati Uniti senza registrazione o esenzione.
Credit Acceptance (Nasdaq: CACC) ha completado una transacción de financiamiento asegurado no recursivo respaldado por activos por un valor de 400,0 millones de dólares. La compañía transfirió préstamos valorados en aproximadamente 500,2 millones de dólares a una entidad de propósito especial, que los transferirá a un fideicomiso que emitirá tres clases de notas.
El financiamiento presenta:
- Costo anualizado promedio esperado del 5,6% incluyendo tarifas
- Período de rotación de 24 meses seguido de amortización basada en los flujos de efectivo de los préstamos transferidos
- El 4,0% de los flujos de efectivo retenido para gastos de servicio
- El 96,0% asignado a pagos de notas y retenciones de concesionarios
Los fondos se utilizarán para pagar deudas existentes y para fines corporativos generales. La estructura de financiamiento mantiene las relaciones existentes con los concesionarios y preserva los derechos de los concesionarios sobre futuros pagos de retención. Las notas no han sido registradas bajo la Ley de Valores de 1933 y no pueden ser ofrecidas o vendidas en EE. UU. sin registro o exención.
Credit Acceptance (Nasdaq: CACC)는 4억 달러 규모의 자산 담보 비회수 보증 금융 거래를 완료했습니다. 이 회사는 약 5억 2백만 달러의 대출을 특수 목적 법인에 전달했으며, 이 법인은 이를 신탁으로 이전하여 세 가지 종류의 노트를 발행할 것입니다.
이번 금융의 특징은 다음과 같습니다:
- 수수료를 포함한 예상 평균 연간 비용 5.6%
- 24개월의 회전 기간 후 대출 현금 흐름에 따른 상환
- 서비스 비용을 위해 현금 흐름의 4.0% 보유
- 96.0%는 노트 지급 및 딜러 유보금에 할당
자금은 기존 부채 상환 및 일반 기업 목적으로 사용될 것입니다. 금융 구조는 기존 딜러 관계를 유지하고 딜러의 미래 유보금 지급 권리를 보장합니다. 이 노트는 1933년 증권법에 따라 등록되지 않았으며, 등록 또는 면허 없이 미국에서 제공되거나 판매될 수 없습니다.
Credit Acceptance (Nasdaq: CACC) a finalisé une opération de financement sécurisé non recours adossée à des actifs d'un montant de 400,0 millions de dollars. L'entreprise a transféré des prêts d'une valeur d'environ 500,2 millions de dollars à une entité à but spécial, qui les transférera à une fiducie émettant trois catégories de billets.
Le financement présente les caractéristiques suivantes :
- Coût annualisé moyen attendu de 5,6 % frais inclus
- Période de rotation de 24 mois suivie d'un amortissement basé sur les flux de trésorerie des prêts transférés
- 4,0 % des flux de trésorerie retenus pour les frais de service
- 96,0 % alloués aux paiements des billets et aux retenues des concessionnaires
Les fonds seront utilisés pour rembourser des dettes existantes et pour des besoins d'entreprise généraux. La structure de financement maintient les relations existantes avec les concessionnaires et préserve les droits des concessionnaires sur les paiements de retenue futurs. Les billets n'ont pas été enregistrés en vertu de la loi sur les valeurs mobilières de 1933 et ne peuvent être offerts ou vendus aux États-Unis sans enregistrement ou exemption.
Credit Acceptance (Nasdaq: CACC) hat eine nicht rückzahlbare, durch Vermögenswerte gesicherte Finanzierungstransaktion im Wert von 400,0 Millionen Dollar abgeschlossen. Das Unternehmen hat Darlehen im Wert von etwa 500,2 Millionen Dollar an eine Zweckgesellschaft übertragen, die diese an einen Treuhandfonds weitergeben wird, der drei Klassen von Schuldverschreibungen emittiert.
Die Finanzierung umfasst:
- Erwartete durchschnittliche jährliche Kosten von 5,6% einschließlich Gebühren
- 24-monatiger revolvierender Zeitraum gefolgt von Amortisation basierend auf den Cashflows der übertragenen Darlehen
- 4,0% der Cashflows werden für Servicing-Kosten einbehalten
- 96,0% werden für die Zahlung der Schuldverschreibungen und die Händler-Rückbehaltung verwendet
Die Mittel werden verwendet, um bestehende Schulden zu tilgen und für allgemeine Unternehmenszwecke. Die Finanzierungsstruktur erhält die bestehenden Händlerbeziehungen und bewahrt die Rechte der Händler auf zukünftige Rückbehaltzahlungen. Die Schuldverschreibungen sind nicht gemäß dem Securities Act von 1933 registriert und können ohne Registrierung oder Ausnahme nicht in den USA angeboten oder verkauft werden.
- Secured $400M in new financing for debt repayment and corporate purposes
- Backed by $500.2M in loans, indicating strong asset coverage
- Structured to maintain existing dealer relationships and payment rights
- 5.6% annualized cost represents significant interest expense
- Notes not registered under Securities Act, limiting potential investor base
Insights
Credit Acceptance's completion of this
The
This transaction demonstrates CACC's continued access to capital markets and investor confidence in its loan underwriting methodology. The company's ability to secure this financing strengthens its position to maintain its specialized lending model that serves credit-challenged consumers.
The dual-purpose allocation toward debt repayment and general corporate purposes indicates disciplined capital management while maintaining operational flexibility. For a company focused on subprime auto lending, regular access to securitization markets is essential for sustainable operations, making this transaction a fundamental component of CACC's business model rather than an exceptional event.
The
Southfield, Michigan, March 27, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the completion of a
| Note Class | Amount | Average Life | Price | Interest Rate | |||||||||||||
| A | $ | 223,080,000 | 2.48 years | 99.99519 | % | 5.02 | % | ||||||||||
| B | $ | 65,780,000 | 3.14 years | 99.97454 | % | 5.30 | % | ||||||||||
| C | $ | 111,140,000 | 3.52 years | 99.98897 | % | 5.71 | % | ||||||||||
The Financing will:
- have an expected average annualized cost of approximately
5.6% including upfront fees and other costs; - revolve for 24 months after which it will amortize based upon the cash flows on the conveyed loans; and
- be used by us to repay outstanding indebtedness and for general corporate purposes.
We will receive
The notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933.
Description of Credit Acceptance Corporation
We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.
Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq stock market under the symbol CACC. For more information, visit creditacceptance.com.
Investor Relations: Douglas W. Busk Chief Treasury Officer (248) 353-2700 Ext. 4432 IR@creditacceptance.com
FAQ
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