Credit Accep Corp Mich Stock Price, News & Analysis

Credit Acceptance Corporation (Nasdaq: CACC) has secured $400 million in asset-backed non-recourse financing, contributing loans valued at approximately $500.2 million to a special purpose entity. Three classes of notes totaling $400 million will be issued with an expected annualized cost of 7.3%. The financing is designed to cover outstanding debt and support general corporate needs. Credit Acceptance will retain 4% of the cash flows for servicing expenses, while the remainder will focus on paying principal and interest on the notes. This structure preserves dealer compensation and contractual relationships.

Credit Acceptance Corporation (CACC) reported a consolidated net income of $127.3 million, or $9.58 per diluted share, for Q4 2022, a 41.5% decline from $217.6 million in Q4 2021. For the fiscal year 2022, net income was $535.8 million, down 44.1% from $958.3 million in 2021. Adjusted net income for Q4 2022 was $156.1 million, significantly lower than $212.6 million in 2021. The company experienced a 403.1% increase in provisions for credit losses, impacting profitability. However, Consumer Loan assignment volume grew by 25.6% in Q4 2022 compared to the prior year.

Credit Acceptance Corporation (Nasdaq: CACC) announced it will release its fourth quarter and full year 2022 earnings on January 31, 2023, after market close. A webcast is scheduled for the same day at 5:00 p.m. Eastern Time to discuss the results. Interested participants can join the conference call via pre-registration to ask questions. Credit Acceptance has provided financing programs for automobile dealers since 1972, helping consumers with diverse credit histories secure vehicle financing and improve their credit scores through reporting to credit agencies.

Credit Acceptance Corporation (Nasdaq: CACC) announced an increase in its Warehouse Facility V from $125 million to $200 million and extended the revolving period to December 29, 2025. The maturity date was also extended to December 27, 2027. The interest rate on borrowings increased to SOFR plus 245 basis points, while the servicing fee decreased from 6.0% to 4.0%. Additionally, the company extended a $100 million asset-backed financing, adjusting its revolving period to December 16, 2024, with the interest rate increasing to SOFR plus 220 basis points.

On December 15, 2022, Credit Acceptance Corporation (Nasdaq: CACC) completed a $200 million asset-backed non-recourse secured financing. This financing involved contributing approximately $250.1 million of loans to a special purpose entity, secured by an institutional lender under a loan and security agreement. The financing will bear interest at SOFR plus 2.35% and will revolve for 36 months before amortization based on cash flows from the loans. The proceeds will be used for repaying debt and general corporate purposes, while ensuring dealer contractual relationships remain intact.

Credit Acceptance Corporation (CACC) has been recognized as the #14 midsize organization on Computerworld's Best Places to Work in IT for 2023. This accolade is based on a survey evaluating benefits, career development, and retention. The company has made significant investments in its technology, enhancing dealer and consumer experiences, and adapting to a hybrid work model. This marks the 11th workplace award for Credit Acceptance in 2022, showcasing its commitment to fostering a positive work environment.

Credit Acceptance Corporation (Nasdaq: CACC) announced the successful completion of a $389.9 million asset-backed non-recourse secured financing, involving loans valued at approximately $500.1 million. The financing will be used to repay existing debt and serve general corporate purposes, with an expected annualized cost of around 8.5%. The structure ensures that dealer relationships remain intact and preserves their rights to future payments. Importantly, the notes issued will not be registered under the Securities Act of 1933, impacting their availability to investors.