CREDIT ACCEPTANCE CORP (CACC): debt financing — Credit Acceptance closes $200M asset-backed financing at ~7.8% avg cost

CREDIT ACCEPTANCE CORP

Three tranches: $106M class A at 6.95%, $43.9M class B at 7.68%, $50M class C at 8.30%.
Conveyed loans with $250M value; financing expected avg annualized cost ~7.8% incl. fees.
Revolves for 36 months, then amortizes from loan cash flows; proceeds used to repay debt and for general corporate purposes.
Company retains 4% of cash flows for servicing; remaining 96% pays principal, interest, and costs.
Financing is non-recourse and structured to preserve dealer holdback rights.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

CREDIT ACCEPTANCE CORP incurred debt of $200.0 million at expected average annualized cost of approximately 7.8% maturing revolve for 36 months after which it will amortize based upon the cash flows on the conveyed loans.

Principal: $200.0 million
Rate: expected average annualized cost of approximately 7.8%
Maturity: revolve for 36 months after which it will amortize based upon the cash flows on the conveyed loans
Event: incurrence

Exact text from the filing

On February 27, 2024, Credit Acceptance Corporation (the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) entered into a $200.0 million asset-backed non-recourse secured financing (the “Financing”).

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299 debt financings filed in the last 30 days. Browse all debt financings →

CREDIT ACCEPTANCE CORP filing history →

Source: SEC EDGAR

accession 0000885550-24-000037

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