Loan & DebtMay 11, 2026, 04:08 PM
Credit Acceptance Completes $450M Asset-Backed Financing
AI Summary
Credit Acceptance Corporation completed a $450.0 million asset-backed non-recourse secured financing on May 5, 2026. This transaction involved conveying approximately $562.6 million in consumer loans to a special purpose entity, which then transferred them to a trust that issued three classes of notes. The financing, with an expected average annualized cost of about 5.2%, will be used to repay higher cost outstanding indebtedness and for general corporate purposes. It is structured to revolve for 24 months before amortizing.
Key Highlights
- Completed a $450.0 million asset-backed non-recourse secured financing.
- Conveyed consumer loans valued at approximately $562.6 million to a special purpose entity.
- Issued three classes of notes: Class A ($248.75M, 4.65%), Class B ($91.32M, 4.96%), Class C ($109.93M, 5.28%).
- The financing has an expected average annualized cost of approximately 5.2%.
- Funds will be used to repay higher cost outstanding indebtedness and for general corporate purposes.
- The financing will revolve for 24 months, after which it will amortize.
- Credit Acceptance will receive 4.0% of the cash flows from the underlying loans as a servicing fee.
Price Impact
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