Credit Acceptance Announces Completion of $300.0 Million Asset-Backed Financing

Core Viewpoint - Credit Acceptance Corporation has successfully completed a $300 million asset-backed non-recourse secured financing, involving the conveyance of loans valued at approximately$375.1 million to a special purpose entity for institutional lenders [2]. Financing Details - The financing will consist of three classes of notes with an expected average annualized cost of about 6.3%, which includes upfront fees and other costs [3]. - The financing will revolve for 36 months, after which it will amortize based on the cash flows from the conveyed loans [3]. - The funds from this financing will be utilized to repay outstanding indebtedness and for general corporate purposes [3]. Cash Flow Distribution - The company will receive 4.0% of the cash flows from the underlying consumer loans to cover servicing expenses [5]. - The remaining 96.0% of cash flows, after dealer holdback payments, will be allocated to pay principal and interest to institutional lenders and cover ongoing financing costs [5]. Company Overview - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers with varying credit histories [6][7]. - The company’s financing programs are designed to help consumers improve their credit scores, allowing them to access more traditional financing options in the future [6].