Credit Acceptance Announces Completion Of $450.0 Million Asset-Backed Financing

Credit Acceptance (Nasdaq: CACC) completed a $450.0 million asset-backed, non-recourse secured financing on May 5, 2026.

Rhea-AI Summary

Credit Acceptance (Nasdaq: CACC) completed a $450.0 million asset-backed, non-recourse secured financing on May 5, 2026. The company conveyed loans valued at approximately $562.6 million to a special purpose entity that will issue three note classes.

Notes: Class A $248.75M (2.50 years, 4.65%), Class B $91.32M (3.20 years, 4.96%), Class C $109.93M (3.62 years, 5.28%). Expected average annualized cost ~5.2%. Financing revolver: 24 months, then amortizes. Proceeds to repay higher-cost indebtedness and for general corporate purposes; company retains 4.0% of loan cash flows for servicing.

Positive

• $450.0M asset-backed secured financing completed
• Conveyed loans valued at $562.6M to the financing structure
• Structure provides 24-month revolving period before amortization
• Company retains 4.0% of loan cash flows to cover servicing

Negative

• Expected average annualized cost of financing approximately 5.2%
• Notes interest rates range from 4.65% to 5.28%
• Notes are not registered under the Securities Act and may not be sold in the U.S. without exemption

Argus May 6 session

+2.71% close to close Open Argus

Details

News Market Reaction – CACC

On May 6, the first trading day after this news, CACC closed 2.71% above the previous close.

Data tracked by StockTitan Argus for the May 6 session.

Key Figures

Financing size: $450.0 million Conveyed loans: $562.6 million Class A notes: $248,750,000 +5 more

Financing size

$450.0 million

Asset-backed non-recourse secured financing

Conveyed loans

$562.6 million

Loans transferred into special purpose structure

Class A notes

$248,750,000

Average life 2.50 years, 4.65% interest rate

Class B notes

$91,320,000

Average life 3.20 years, 4.96% interest rate

Class C notes

$109,930,000

Average life 3.62 years, 5.28% interest rate

Financing cost

5.2%

Expected average annualized cost including fees

Revolving period

24 months

Financing revolver before amortization

Servicing fee share

4.0%

Cash flows retained to cover servicing expenses

Historical Context

5 past events · Latest: Apr 28

5 events

1. Apr 28

   Earnings timing

   24h Move

   -3.1%

   Announcement of first quarter 2026 earnings release date and webcast logistics.

2. Apr 27

   Executive appointment

   24h Move

   +0.3%

   Appointment of Robert Bourrier as Chief Sales Officer to lead national sales.

3. Apr 09

   Workplace award

   24h Move

   -0.8%

   Named 2026 USA Today Top Workplaces award winner with #4 ranking in category.

4. Apr 02

   Workplace ranking

   24h Move

   +5.9%

   Recognition as No. 18 on Fortune's 2026 100 Best Companies to Work For list.

5. Mar 19

   Executive appointment

   24h Move

   -4.1%

   Creation of Chief Business Officer role with focus on planning and analytics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

asset-backed, non-recourse, special purpose entity, dealer holdback

4 terms

asset-backed financial

"completion of a $450.0 million asset-backed non-recourse secured financing"

Asset-backed describes a loan, bond, or security that is supported by a specific pool of tangible or financial items—such as loans, receivables, leases, or property—that can be sold or collected to pay investors if the borrower can’t. Think of it like a loan tied to collateral: if payments stop, the assets provide a safety net, which changes the investment’s risk, expected return, and how regulators treat it.

non-recourse financial

"a $450.0 million asset-backed non-recourse secured financing (the “Financing”)"

A non-recourse loan is a type of debt where the lender’s recovery is limited to a specific asset pledged as collateral, and the borrower cannot be personally pursued for any remaining balance if the asset’s value falls short. For investors, non-recourse financing shifts downside risk onto the lender and protects a borrower’s other assets, which can affect a company’s risk profile, borrowing costs, and potential returns — much like insurance that covers only the item left as collateral.

special purpose entity financial

"to a wholly owned special purpose entity which will transfer the loans to a trust"

A special purpose entity is a separate legal company created to hold specific assets, contracts or projects and keep their financial effects distinct from the main business—think of it as a sealed container or dedicated folder used for one task. Investors care because these entities can hide or isolate risks, liabilities, or cash flows from a parent company’s balance sheet, so understanding them helps assess true exposure, transparency and the real value of an investment.

dealer holdback financial

"less amounts due to dealers for payments of dealer holdback, will be used to pay"

A dealer holdback is a small portion of the proceeds from a securities offering that is reserved and later paid to broker-dealers as a delayed sales incentive or reimbursement for distribution costs. Think of it as a post-sale bonus to the middlemen who sold the new shares, similar to a store giving sales staff a commission after a big promotion. For investors, holdbacks affect how aggressively dealers sell new issues, can influence initial pricing and aftermarket liquidity, and therefore subtly shape short-term supply, demand and volatility in the stock.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Southfield, Michigan, May 05, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the completion of a $450.0 million asset-backed non-recourse secured financing (the “Financing”).  Pursuant to this transaction, we conveyed loans having a value of approximately $562.6 million to a wholly owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes:

Note Class			Amount			Average Life			Price				Interest Rate
	A		$	248,750,000			2.50 years			99.99851%				4.65%
	B		$	91,320,000			3.20 years			99.97864%				4.96%
	C		$	109,930,000			3.62 years			99.98232%				5.28%

The Financing will:

• have an expected average annualized cost of approximately 5.2% including upfront fees and other costs;
• revolve for 24 months after which it will amortize based upon the cash flows on the conveyed loans; and
• be used by us to repay higher cost outstanding indebtedness and for general corporate purposes.

We will receive 4.0% of the cash flows related to the underlying consumer loans to cover servicing expenses. The remaining 96.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest on the notes as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with dealers and to preserve the dealers’ rights to future payments of dealer holdback.

The notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.  

Without our financing programs, consumers are often unable to purchase vehicles, or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

Investor Relations: Jay Brinkley
Senior Vice President & Treasurer
(248) 353-2700 Ext. 6739
IR@creditacceptance.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Credit Acceptance (CACC) announce on May 5, 2026 regarding financing?

Credit Acceptance announced completion of a $450.0 million asset-backed non-recourse secured financing. According to the company, loans valued at approximately $562.6 million were conveyed to a trust that will issue three classes of notes.

How will Credit Acceptance (CACC) use the proceeds from the $450 million financing?

The proceeds will be used to repay higher-cost outstanding indebtedness and for general corporate purposes. According to the company, the financing specifically targets replacement of more expensive debt and working capital needs.

What are the note classes, sizes, average lives, and interest rates in the CACC financing?

The financing issued three note classes: Class A $248.75M (2.50 years, 4.65%), Class B $91.32M (3.20 years, 4.96%), Class C $109.93M (3.62 years, 5.28%). According to the company, those are the principal amounts and rates.

What is the expected cost and payment structure of Credit Acceptance's new financing?

Expected average annualized cost is approximately 5.2%, including upfront fees and costs. According to the company, the facility revolvest for 24 months, then amortizes based on conveyed-loan cash flows.

How does Credit Acceptance receive servicing fees from the conveyed loans in the financing?

Credit Acceptance will receive 4.0% of cash flows related to the underlying consumer loans to cover servicing expenses. According to the company, the remaining 96.0% funds note principal, interest, dealer holdbacks, and financing costs.