Credit Acceptance Corporation entered into a $600.0 million asset-backed non-recourse secured financing transaction on August 20, 2026. The financing is collateralized by a portfolio of consumer auto loans and the proceeds will be used to repay higher-cost existing debt and for general corporate purposes.
Key Details
- Transaction Size: The financing totals $600.0 million, secured by approximately $750.2 million in consumer loans conveyed to a wholly-owned special purpose entity.
- Financing Terms: The transaction involved the issuance of three classes of notes with an expected average annualized cost of approximately 5.5%. The facility will have a 24-month revolving period before it begins to amortize.
- Use of Proceeds: Funds will be used to repay higher-cost outstanding indebtedness and for general corporate purposes. The company will receive a 4.0% servicing fee on the cash flows from the underlying loans.