Credit Acceptance Announces Completion of $400.0 Million Asset-Backed Financing

Core Viewpoint - Credit Acceptance Corporation has completed a $400 million asset-backed non-recourse secured financing, involving the conveyance of loans valued at approximately$500.2 million to a special purpose entity, which will issue three classes of notes [1]. Financing Details - The financing structure includes three classes of notes with the following details: - Class A: $223.08 million, average life of 2.48 years, priced at 99.99519$65.78 million, average life of 3.14 years, priced at 99.97454%, with an interest rate of 5.30% - Class C: $111.14 million, average life of 3.52 years, priced at 99.98897%, with an interest rate of 5.71% [1]. - The company will receive 4% of the cash flows from the underlying consumer loans to cover servicing expenses, while 96% will be allocated to pay principal and interest on the notes and ongoing financing costs [1]. Company Overview - Credit Acceptance Corporation provides innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history, thus facilitating vehicle ownership [3]. - The company's financing programs help consumers improve their credit scores, allowing them to transition to more traditional financing sources [4].