America’s Car-Mart, Inc. Completes $172 Million Term Securitization

Rhea-AI Summary

America's Car-Mart (NASDAQ: CRMT) has successfully completed its eighth asset-backed securitization transaction, raising $172 million through the issuance of notes by ACM Auto Trust 2025-3. The transaction features an overall weighted average coupon of 5.46%, marking an 81 basis point improvement from their May 2025 securitization.

The notes were issued in two classes: $133.34 million in Class A Notes at a 5.01% coupon rate and $38.62 million in Class B Notes at 6.08%. The offering saw strong market interest, with Class A Notes being nearly 8 times oversubscribed and Class B Notes approximately 16 times oversubscribed. This marks the company's fourth consecutive improvement in weighted average coupon, with a total reduction of 308 basis points in weighted average spread since their 2024-1 transaction.

Insights

Corporate Finance Specialist

America's Car-Mart successfully completed its eighth securitization with significantly improved financing terms, demonstrating strong market confidence and enhancing capital efficiency.

America's Car-Mart has completed a $172 million term securitization with impressive pricing improvements. The transaction's weighted average coupon of 5.46% represents an 81 basis point improvement from their May 2025 securitization. This marks their eighth asset-backed securities (ABS) transaction, showing the maturation of their financing strategy.

The securitization structure included $133.34 million of Class A Notes at 5.01% and $38.62 million of Class B Notes at 6.08%. What's particularly notable is the exceptional market demand – Class A Notes were almost 8 times oversubscribed while Class B Notes were nearly 16 times oversubscribed. This overwhelming investor interest signals strong confidence in CRMT's underlying auto loan portfolio performance.

The company has achieved four consecutive improvements in their weighted average coupon and reduced their weighted average spread by an impressive 308 basis points since their 2024-1 transaction. This trend of declining financing costs represents significant savings that should flow directly to the bottom line, enhancing profitability without requiring operational changes.

These improving terms indicate the credit markets view CRMT's loan portfolio quality and underwriting standards favorably. For a company in the subprime auto lending space, securing increasingly favorable financing terms is a crucial competitive advantage, allowing them to potentially offer more competitive rates to customers while maintaining margins. The reduced cost of capital strengthens their business model and provides greater financial flexibility for potential growth initiatives.

Weighted average coupon improved 81 basis points from prior May 2025 securitization

ROGERS, Ark., Aug. 29, 2025 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), announced today that it has completed a term securitization transaction involving the issuance of $172 million in principal amount of asset-backed notes with an overall weighted average coupon of 5.46%.

ACM Auto Trust 2025-3 issued $133.34 million of Class A Notes and $38.62 million of Class B Notes. The Class A Notes have a coupon rate of 5.01% and the Class B Notes have a coupon rate of 6.08%.

“I am pleased with the favorable outcome of our eighth ABS transaction, reflecting the continued strength of this developing platform. There is more that we can and will do to improve the platform as we move forward,” said Douglas Campbell, Chief Executive Officer of America’s Car-Mart.

“Market interest for our securitizations remains high, with the Class A Notes almost 8 times oversubscribed, and the Class B Notes nearly 16 times oversubscribed. Strong demand combined with favorable operating performance within our portfolio have significantly improved the pricing of our Notes. In fact, this is the fourth consecutive improvement in the overall weighted average coupon, and we have reduced our weighted average spread by 308 basis points since our 2024-1 transaction, as we continue to lower our financing costs and strengthen our capital efficiency,” said Jonathan Collins, Chief Financial Officer.

ACM Auto Trust 2025-3 is an indirect subsidiary of the Company. The notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), 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.

About America’s Car-Mart, Inc.

America’s Car-Mart, Inc. (the “Company”) operates automotive dealerships in 12 states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States, selling quality used vehicles and providing financing for substantially all of its customers. For more information about America’s Car-Mart, including investor presentations, please visit our website at www.car-mart.com.

Contact:

SM Berger & Company
Andrew Berger, Managing Director
andrew@smberger.com
(216) 464-6400

FAQ

What is the size and structure of America's Car-Mart's (CRMT) latest securitization?

The securitization totals $172 million, consisting of $133.34 million in Class A Notes (5.01% coupon) and $38.62 million in Class B Notes (6.08% coupon).

How does CRMT's 2025-3 securitization compare to previous offerings?

The 2025-3 securitization shows an 81 basis point improvement in weighted average coupon from May 2025, marking the fourth consecutive improvement in overall weighted average coupon.

What was the market demand for America's Car-Mart's latest securitization?

Market demand was strong with Class A Notes being 8 times oversubscribed and Class B Notes 16 times oversubscribed.

How much has CRMT improved its financing costs since 2024?

CRMT has reduced its weighted average spread by 308 basis points since their 2024-1 transaction, demonstrating continued improvement in financing costs.

What is the overall weighted average coupon for CRMT's 2025-3 securitization?

The overall weighted average coupon for the securitization is 5.46%.