Credit Acceptance Announces Extension of Revolving Secured Warehouse Facility

Rhea-AI Summary

Credit Acceptance (NASDAQ:CACC) has announced the extension of its $200 million revolving secured warehouse facility. The facility's revolving period has been extended from September 21, 2026, to September 19, 2028. Additionally, the company secured more favorable terms with the interest rate decreasing from SOFR plus 225 basis points to SOFR plus 185 basis points.

The company currently has no outstanding balance under this facility. 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

• Extended credit facility term by 2 years to September 2028
• Secured more favorable interest rate terms with 40 basis points reduction
• Zero outstanding balance on the $200M facility indicates strong liquidity position

Negative

• None.

Insights

Financial Analyst

CACC secures favorable warehouse facility extension with lower borrowing costs, enhancing financial flexibility through 2028.

Credit Acceptance Corporation has successfully extended its $200 million revolving secured warehouse facility by two years, pushing the maturity date from September 2026 to September 2028. This extension comes with improved terms, as the interest rate on borrowings has been reduced by 40 basis points from SOFR plus 225 basis points to SOFR plus 185 basis points. This rate reduction translates to meaningful interest expense savings on any future borrowings under this facility.

The facility extension strengthens CACC's liquidity position and financial flexibility for the next three years, providing the company with an additional funding source to support its subprime auto lending business. While the company currently has no outstanding balance on this facility, having this capital readily available gives CACC additional optionality in managing its funding mix.

For a specialty finance company like Credit Acceptance, maintaining diversified funding sources with favorable terms is crucial to sustaining profitable operations. The improved borrowing terms suggest lenders have confidence in CACC's business model and credit quality. The 40 basis point reduction in borrowing costs is particularly notable in today's interest rate environment and will contribute to maintaining healthy lending margins if the company utilizes this facility.

This extension represents good treasury management by extending debt maturities further into the future while simultaneously lowering potential borrowing costs, creating a more stable long-term capital structure for Credit Acceptance's lending operations.

Southfield, Michigan, Sept. 19, 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 $200.0 million revolving secured warehouse facility will cease to revolve from September 21, 2026 to September 19, 2028. The interest rate on borrowings under the facility has been decreased from the Secured Overnight Financing Rate (“SOFR”) plus 225 basis points to SOFR plus 185 basis points. There were no other material changes to the terms of the facility.

As of September 19, 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

FAQ

What changes did Credit Acceptance (CACC) make to its revolving secured warehouse facility?

Credit Acceptance extended the facility's revolving period to September 19, 2028 and reduced the interest rate to SOFR plus 185 basis points, down from SOFR plus 225 basis points.

What is the size of Credit Acceptance's (CACC) revolving secured warehouse facility?

Credit Acceptance's revolving secured warehouse facility is $200 million in size.

How much does Credit Acceptance (CACC) currently owe under this facility?

As of September 19, 2025, Credit Acceptance had no outstanding balance under the facility.

What is Credit Acceptance's (CACC) business model?

Credit Acceptance provides vehicle financing solutions through a nationwide network of automobile dealers, enabling consumers with limited credit history to purchase vehicles while helping them improve their credit scores.