Credit Acceptance Announces Extension of Revolving Secured Warehouse Facility
Credit Acceptance Corporation (Nasdaq: CACC) has announced the extension of its $75.0 million revolving secured warehouse facility by two years, from September 30, 2026, to September 30, 2028.
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Rhea-AI Summary
Credit Acceptance Corporation (Nasdaq: CACC) has announced the extension of its $75.0 million revolving secured warehouse facility by two years, from September 30, 2026, to September 30, 2028. The company secured improved terms, including a reduction in the interest rate from SOFR plus 210 basis points to SOFR plus 185 basis points, and a decrease in the servicing fee from 6.0% to 4.0% of collections on underlying consumer loans.
The facility currently has no outstanding balance as of July 11, 2025. Credit Acceptance specializes in providing vehicle financing solutions through a nationwide network of automobile dealers, particularly serving consumers who might not qualify for traditional financing options.
Positive
- Secured 2-year extension of $75.0 million revolving facility to 2028
- Reduced interest rate by 25 basis points to SOFR + 185bps
- Decreased servicing fee from 6.0% to 4.0%, improving operational efficiency
- Zero outstanding balance on the facility indicates strong liquidity position
Negative
- None.
Details
News Market Reaction – CACC
The recorded move for CACC in the trading session of this news was -0.20%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Southfield, Michigan, July 11, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that we extended the date on which our
As of July 11, 2025, we did not have a balance outstanding under the facility.
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
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