Credit Acceptance Announces Completion Of $600.0 Million Asset-Backed Financing

Rhea-AI Summary

Credit Acceptance (Nasdaq: CACC) completed a $600.0 million asset-backed, non-recourse secured financing, supported by approximately $750.2 million of consumer loans transferred to a wholly owned special purpose entity and then to a trust issuing three note classes (A, B and C).

The notes total $319.88 million, $117.3 million and $162.82 million, with average lives of 2.54, 3.23 and 3.69 years and coupon rates of 5.01%, 5.29% and 5.51%, respectively. According to Credit Acceptance, the transaction’s expected average annualized cost is about 5.5%, will revolve for 24 months before amortizing, and proceeds will be used to repay higher-cost debt and for general corporate purposes. The company will receive 4.0% of cash flows to cover servicing, with the remaining 96.0% applied to note payments and financing costs while preserving dealer holdback rights. Following closing, Credit Acceptance reported about $1.8 billion of unused borrowing capacity on its revolving credit facilities plus unrestricted cash.

Positive

• $600.0 million non-recourse asset-backed financing completed
• Loans of approximately $750.2 million conveyed into the securitization structure
• Expected average annualized financing cost of about 5.5%
• Proceeds designated to repay higher-cost indebtedness and for general corporate purposes
• Company retains 4.0% of loan cash flows for servicing compensation
• Post-transaction unused revolving credit capacity and unrestricted cash of about $1.8 billion

Negative

• All-in cost increased modestly versus the company’s May securitization due to higher Treasury rates

Argus Aug 21 session

+2.59% close to close Open Argus

Details

News Market Reaction – CACC

On Aug 21, the first trading day after this news, CACC closed 2.59% above the previous close.

Data tracked by StockTitan Argus for the Aug 21 session.

Key Figures

Financing: $600.0 million Conveyed loans: $750.2 million Expected financing cost: 5.5% +5 more

Financing

$600.0 million

Completed asset-backed non-recourse secured financing

Conveyed loans

$750.2 million

Loans conveyed to a wholly owned special purpose entity

Expected financing cost

5.5%

Expected average annualized cost including fees and other costs

Revolving period

24 months

Period before amortization based on conveyed-loan cash flows

Unused borrowing capacity and cash

$1.8 billion

Available following completion of the financing

Class A notes

$319,880,000

Note amount with a 2.54-year average life

Class B notes

$117,300,000

Note amount with a 3.23-year average life

Class C notes

$162,820,000

Note amount with a 3.69-year average life

Historical Context

5 past events · Latest: Aug 13

5 events

1. Aug 13

   Technology leadership change

   24h Move

   +1.0%

   Appointed an Amazon veteran as chief technology officer to advance AI-enabled operations.

2. Aug 04

   Second-quarter earnings

   24h Move

   +0.8%

   Reported higher net income and diluted EPS alongside continued liquidity and dealer-network growth.

3. Jul 28

   Earnings release scheduling

   24h Move

   -0.3%

   Scheduled the second-quarter earnings release and webcast for August 4.

4. Jul 27

   Leadership changes

   24h Move

   -3.7%

   Announced executive departures, a new marketing chief, and a smaller board.

5. Jun 10

   CFO appointment

   24h Move

   -1.5%

   Named Joe Billante chief financial officer ahead of Jay Martin's retirement.

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

Key Terms

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

4 terms

asset-backed financing financial

"completion of a $600.0 million asset-backed non-recourse secured financing"

Asset-backed financing is when a borrower raises money by using a specific pool of assets—such as loans, invoices, leases, or receivables—as collateral, so lenders are repaid from the cash those assets generate. Think of it like taking out a loan against a bundle of income-producing items rather than a single paycheck; investors care because the quality and predictability of those underlying assets determine how safe the payments are, how much interest the borrower pays, and how the company’s liquidity and credit profile look to the market.

non-recourse financial

"asset-backed non-recourse secured 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"

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

"amounts due to dealers for payments of dealer holdback"

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, Aug. 20, 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 $600.0 million asset-backed non-recourse secured financing (the “Financing”).  Pursuant to this transaction, we conveyed loans having a value of approximately $750.2 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		$	319,880,000			2.54 years			99.99218%				5.01%
	B		$	117,300,000			3.23 years			99.97598%				5.29%
	C		$	162,820,000			3.69 years			99.98270%				5.51%

The Financing will:

• have an expected average annualized cost of approximately 5.5% 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 $1.8 billion in unused and available borrowing capacity on its revolving credit facilities and unrestricted cash. “We are pleased with the execution of this $600 million securitization, matching the largest ABS transaction in our history,” said Jay Brinkley, Treasurer of Credit Acceptance. “Strong demand from our investor base enabled us to achieve our lowest credit spreads since late 2021, and while the all-in cost increased modestly from our most recent securitization in May, the increase was driven by higher Treasury rates.”

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 August 20, 2026 about new financing?

Credit Acceptance announced completion of a $600.0 million non-recourse asset-backed financing. According to Credit Acceptance, the deal securitizes about $750.2 million in consumer loans through a trust issuing three note classes with defined maturities and coupons.

What are the key terms of the August 2026 Credit Acceptance (CACC) securitization notes?

The securitization issued Class A, B and C notes totaling $600.0 million. According to Credit Acceptance, the classes have average lives of 2.54, 3.23 and 3.69 years with interest rates of 5.01%, 5.29% and 5.51%, respectively.

How will Credit Acceptance (CACC) use the $600 million asset-backed financing proceeds?

The proceeds will be used to repay higher-cost outstanding indebtedness and for general corporate purposes. According to Credit Acceptance, the financing structure is designed to avoid changing its contractual relationships with automobile dealers, including dealer holdback rights.

What is the expected cost of the new Credit Acceptance (CACC) securitization completed in August 2026?

The financing is expected to have an average annualized cost of about 5.5%, including upfront fees and other costs. According to Credit Acceptance, overall credit spreads reached their lowest levels since late 2021 despite higher Treasury rates.

How does the new Credit Acceptance (CACC) financing affect its liquidity and borrowing capacity?

Following completion of the securitization, Credit Acceptance reported about $1.8 billion in unused and available revolving credit capacity plus unrestricted cash. According to Credit Acceptance, this liquidity sits alongside the new $600.0 million non-recourse financing.

How are cash flows from the securitized loans allocated in the Credit Acceptance (CACC) deal?

Credit Acceptance will receive 4.0% of cash flows from the underlying loans to cover servicing expenses. According to Credit Acceptance, the remaining 96.0%, after dealer holdback, will pay principal, interest on the notes and ongoing financing costs.