Welcome to our dedicated page for Credit Accep Mich news (Ticker: CACC), a resource for investors and traders seeking the latest updates and insights on Credit Accep Mich stock.
Credit Acceptance Corporation (CACC) news coverage focuses on financial performance updates, capital market activities, and regulatory developments relevant to specialty auto finance. As a subprime auto lender operating through dealer partnerships nationwide, the company's announcements typically center on quarterly earnings results, loan portfolio metrics, and debt financing transactions.
Earnings reports from Credit Acceptance provide insight into loan origination volumes, consumer payment trends, and dealer program performance across subprime credit segments. The company's financial disclosures detail how changes in credit conditions, economic factors, and underwriting model adjustments affect profitability within non-prime auto lending. These quarterly updates help investors understand portfolio quality trends and the company's ability to generate returns from its dealer-partner financing model.
Capital markets news frequently involves Credit Acceptance's debt issuances and credit facility arrangements, which fund the company's loan advances to dealers. Announcements about senior note offerings, revolving credit extensions, and asset-backed securitizations reflect the company's ongoing capital needs and access to funding markets. These financing activities are central to Credit Acceptance's operations, as the availability and cost of capital directly impact lending capacity and margins.
Regulatory and compliance news also appears in Credit Acceptance coverage, particularly regarding consumer lending regulations, state-level finance company requirements, and federal oversight developments. Material events such as regulatory inquiries, compliance matters, or changes to lending laws can significantly affect specialty finance operations. This page provides comprehensive access to Credit Acceptance announcements, helping you track the business developments, financial trends, and regulatory factors shaping this subprime auto finance company.
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.
Credit Acceptance (Nasdaq: CACC) has been named one of U.S. News' Best Companies to Work For, along with recognition in the Financial Services sector and the Midwest region. This places Credit Acceptance in the top 25% of companies in each category. CEO Ken Booth attributes these honors to the company's strong work environment, which empowers employees and aligns with its mission to make car ownership more accessible. This marks the company's tenth time in the 100 Best Companies to Work For list. Credit Acceptance has also received the Top Workplaces USA Award for the fourth consecutive year and was listed among People Magazine’s Companies that Care.
Credit Acceptance (Nasdaq: CACC) has completed a $550 million asset-backed non-recourse secured financing. The company conveyed approximately $687.7 million in loans to a special purpose entity, which transferred the loans to a trust. The trust will issue three classes of notes with different amounts, average lives, and interest rates: Class A ($272.44 million, 2.5 years, 5.95%), Class B ($110.29 million, 3.16 years, 6.11%), and Class C ($167.27 million, 3.67 years, 6.70%).
The financing has an expected average annualized cost of 6.5% and will revolve for 24 months before amortizing based on cash flows from the conveyed loans. Proceeds will be used to repay existing debt and for general corporate purposes. Credit Acceptance will receive 4% of the cash flows to cover servicing expenses, while the remaining 96%, after dealer holdback payments, will cover principal, interest, and ongoing financing costs. The financing preserves dealers' contractual rights and holdback payments.
Credit Acceptance (Nasdaq: CACC) has extended the maturity date of its revolving secured line of credit facility from June 22, 2026, to June 22, 2027. The interest rate on borrowings has been adjusted from the Bloomberg Short-Term Bank Yield Index rate plus 187.5 basis points to the Secured Overnight Financing Rate plus 197.5 basis points. As of June 17, 2024, the company had $66.8 million outstanding under this facility. No other material changes were made to the terms of the facility. Credit Acceptance provides innovative financing solutions to automobile dealers, enabling vehicle sales to consumers regardless of their credit history.
Credit Acceptance announced its Q1 2024 results with consolidated net income of $64.3 million, or $5.08 per diluted share, down from $99.5 million in Q1 2023. Adjusted net income was $117.4 million. The company saw growth in loan volume but faced challenges with decreasing forecasted collection rates.
FAQ
What is the current stock price of Credit Accep Mich (CACC)?
What is the market cap of Credit Accep Mich (CACC)?
