Credit Acceptance Announces Completion of $500.0 Million Asset-Backed Financing

Rhea-AI Summary

Credit Acceptance (Nasdaq: CACC) completed a $500.0 million asset-backed, non-recourse secured financing on Nov 13, 2025. The company conveyed loans valued at approximately $625.2 million to a special purpose entity that issued three classes of notes: Class A $284.61M (2.58y, 4.50%), Class B $104.57M (3.33y, 4.87%), and Class C $110.82M (3.70y, 5.38%).

The Financing has an expected average annualized cost of approximately 5.1%, will revolve for 24 months then amortize based on loan cash flows, and will be used to repay higher-cost indebtedness and for general corporate purposes. Credit Acceptance retained about $2.0 billion of unused borrowing capacity and unrestricted cash after closing.

Positive

• $500.0M completed asset-backed financing
• Conveyed loans valued at $625.2M to the securitization trust
• Maintained approximately $2.0B unused borrowing capacity and cash
• Notes priced across three tranches with interest rates of 4.50%–5.38%

Negative

• Expected average annualized cost of the Financing of approximately 5.1%

Insights

Structured finance analyst

Credit Acceptance completed a $500.0 million ABS that lowers funding cost, preserves dealer economics, and leaves sizable liquidity.

Credit Acceptance conveyed ~625.2 million of loans into a trust that issued three note classes totaling 500.0 million with weighted average expected cost ~5.1% including fees; individual tranche rates run from 4.50% to 5.38%. The structure revolved for 24 months then will amortize on loan cash flows, and the company keeps a 2.0 billion buffer of unused revolving capacity and cash.

The transaction reduces reliance on higher‑cost debt and funds general corporate needs while preserving dealer holdback rights; the servicer retains a 4.0% servicing cash flow slice. Key dependencies include actual loan performance (which drives amortization timing and note paydowns), dealer holdback payments, and the absence of early amortization or default events—factors the company emphasized as part of its track record.

Watch the 24 months revolving period, actual cash‑flow receipts versus modeled projections, and any use of proceeds to repay specific higher‑cost borrowings. These items will clarify realized cost savings and duration risk over the next 1–3 years.

Southfield, Michigan, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the completion of a $500.0 million asset-backed non-recourse secured financing (the “Financing”).  Pursuant to this transaction, we conveyed loans having a value of approximately $625.2 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		$	284,610,000			2.58 years			99.97705%				4.50%
	B		$	104,570,000			3.33 years			99.98397%				4.87%
	C		$	110,820,000			3.70 years			99.98573%				5.38%

The Financing will:

• have an expected average annualized cost of approximately 5.1% 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.

Following the completion of this financing, Credit Acceptance maintained approximately $2.0 billion in unused and available borrowing capacity on its revolving credit facilities and unrestricted cash. "I am proud to announce our 60th term securitization since 1998 and lowest-cost ABS transaction since late 2021," Jay Brinkley, Treasurer of Credit Acceptance, "particularly with our history of securitization trusts paying timely interest and principal in full and no early amortization events, events of default, or other adverse events causing early or late repayment."

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

What did Credit Acceptance announce on Nov 13, 2025 regarding CACC financing?

Credit Acceptance completed a $500.0M asset-backed non-recourse secured financing and conveyed loans of approximately $625.2M to a trust that issued three note classes.

How are the CACC notes structured and what are their interest rates?

The trust issued three classes: Class A $284.61M (2.58 years, 4.50%), Class B $104.57M (3.33 years, 4.87%), Class C $110.82M (3.70 years, 5.38%).

What is the cost and term of the CACC asset-backed financing?

The Financing has an expected average annualized cost of approximately 5.1%, will revolve for 24 months, then amortize based on loan cash flows.

How will Credit Acceptance use proceeds from the Nov 2025 CACC financing?

Proceeds will be used to repay higher-cost outstanding indebtedness and for general corporate purposes.

What cash flow rights does Credit Acceptance retain after the securitization?

Credit Acceptance will receive 4.0% of cash flows related to the underlying consumer loans for servicing; 96.0% (less dealer holdback) pays notes and Financing costs.

Will the CACC notes be registered for sale in the U.S.?

No; the notes have not been and will not be registered under the Securities Act of 1933 and cannot be offered or sold in the U.S. absent registration or an applicable exemption.