Credit Acceptance Announces Completion of $500.0 Million Asset-Backed Financing

Core Points - Credit Acceptance Corporation completed a $500.0 million asset-backed non-recourse secured financing, conveying loans valued at approximately $625.2 million to a special purpose entity [1] - The financing involves three classes of notes with varying amounts, average life, prices, and interest rates, structured to ensure that 96.0% of cash flows will be used for principal and interest payments [1][2] - The company maintains approximately $2.0 billion in unused borrowing capacity and unrestricted cash following this financing, marking its 60th term securitization since 1998 [2] Financing Structure - The notes issued include Class A ($284.61 million, 2.58 years, 4.50% interest), Class B ($104.57 million, 3.33 years, 4.87% interest), and Class C ($110.82 million, 3.70 years, 5.38% interest) [1] - The company will receive 4.0% of cash flows from the underlying consumer loans to cover servicing expenses, while the remaining 96.0% will be allocated to pay principal and interest on the notes [1] Company Overview - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories [3] - The financing programs help consumers improve their credit scores, allowing them to transition to more traditional financing sources [4] - The company is publicly traded on the Nasdaq under the symbol CACC [4]