Credit Acceptance Announces Increase and Extension of Asset-Backed Financing

Rhea-AI Summary

Credit Acceptance (Nasdaq: CACC) announced the increase and extension of its asset-backed non-recourse secured financing, originally entered into on December 15, 2022. The financing, known as Term ABS 2022-2, has been increased from $200 million to $300 million. Additionally, the revolving period for the financing has been extended from December 15, 2025, to June 15, 2027. The company, which provides financing solutions through a national network of automobile dealers, aims to help consumers with poor credit histories purchase vehicles. This program also allows consumers to enhance their credit scores by reporting to the three national credit agencies.

Positive

• The asset-backed financing amount increased from $200 million to $300 million.
• The revolving period for the financing extended to June 15, 2027.

Negative

• None.

Southfield, Michigan, June 21, 2024 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that we have increased the amount of the asset-backed non-recourse secured financing that we entered into on December 15, 2022 (the “Financing”) and to which we refer as Term ABS 2022-2 from $200.0 million to $300.0 million. Under the amendment effecting the increase and extension, the date on which the Financing will cease to revolve has been extended from December 15, 2025 to June 15, 2027.

There were no other material changes to the terms of the Financing.

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.

FAQ

What recent change did Credit Acceptance (CACC) announce regarding its asset-backed financing?

Credit Acceptance announced an increase in its asset-backed financing from $200 million to $300 million, and an extension of the revolving period to June 15, 2027.

When was the original asset-backed financing agreement by Credit Acceptance (CACC) signed?

The original asset-backed financing agreement was signed on December 15, 2022.

What is the new end date for the revolving period of Credit Acceptance 's (CACC) financing?

The revolving period for Credit Acceptance 's financing now ends on June 15, 2027.

How much has Credit Acceptance (CACC) increased its asset-backed financing by?

Credit Acceptance has increased its asset-backed financing by $100 million, bringing the total to $300 million.