America’s Car-Mart, Inc. Completes $216 Million Term Securitization

Rhea-AI Summary

America's Car-Mart has successfully completed its seventh asset-backed securitization transaction, raising $216 million through the issuance of notes by ACM Auto Trust 2025-2. The transaction consists of $165.18 million in Class A Notes with a 5.55% coupon rate and $50.82 million in Class B Notes with a 7.25% coupon rate, resulting in a weighted average coupon of 6.27%. The company achieved improved pricing compared to previous issuances, with the weighted average coupon decreasing by 22 basis points from January 2025 and 107 basis points from October 2024, indicating growing market confidence in their portfolio and contributing to lower financing costs and enhanced capital efficiency.

Positive

• Successful completion of $216 million securitization transaction
• Improved pricing with weighted average coupon decreasing by 107 basis points since October 2024
• Strong market demand indicating growing investor confidence in the portfolio
• Lower financing costs through improved coupon rates

Negative

• None.

ROGERS, Ark., May 30, 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 $216 million in principal amount of asset-backed notes with an overall weighted average coupon of 6.27%.

ACM Auto Trust 2025-2 issued $165.18 million of Class A Notes and $50.82 million of Class B Notes. The Class A Notes have a coupon rate of 5.55% and the Class B Notes have a coupon rate of 7.25%.

“I am very pleased with the outcome on our seventh ABS transaction,” said Douglas Campbell, Chief Executive Officer of America’s Car-Mart.

“We continue to see strong demand and improved pricing for our securitizations, which reflects growing market confidence in our portfolio. The weighted average coupon improved by 22 basis points to 6.27% compared to our January 2025 issuance and by 107 basis points from our October 2024 issuance. Our work here continues to lower our financing costs and strengthen our capital efficiency,” said Jonathan Collins, Chief Financial Officer.

ACM Auto Trust 2025-2 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 $216 million, consisting of $165.18 million in Class A Notes (5.55% coupon) and $50.82 million in Class B Notes (7.25% coupon), with an overall weighted average coupon of 6.27%.

How does CRMT's May 2025 securitization compare to previous issuances?

The May 2025 securitization shows improved pricing with the weighted average coupon decreasing by 22 basis points compared to January 2025 and 107 basis points from October 2024.

What is the purpose of America's Car-Mart's securitization transaction?

The securitization aims to lower financing costs and strengthen capital efficiency for the company while demonstrating growing market confidence in their portfolio.

Who issued the asset-backed notes for America's Car-Mart?

ACM Auto Trust 2025-2, an indirect subsidiary of America's Car-Mart, issued the asset-backed notes.

What is the significance of this being CRMT's seventh ABS transaction?

Being the seventh ABS transaction demonstrates CRMT's established track record in securitization markets, with improving terms and growing market confidence in their portfolio.