America’s Car-Mart, Inc. Completes $300 Million Term Securitization
Rhea-AI Summary
America's Car-Mart, Inc. (NASDAQ: CRMT) has successfully completed a $300 million term securitization transaction. The issuance involves asset-backed notes with an overall weighted average coupon of 7.44% and an advance rate of 59.15%. ACM Auto Trust 2024-2, an indirect subsidiary of the Company, issued $228.2 million of Class A Notes with a 6.06% coupon rate and $71.8 million of Class B Notes with a 9.21% coupon rate.
This marks the Company's second term securitization of 2024, with significant improvements in benchmark rate and spread, resulting in a 198 basis point improvement in the weighted average coupon compared to their January 2024 transaction. The notes have not been registered under the Securities Act and are subject to specific offering restrictions.
Positive
- Successful completion of a $300 million term securitization
- 198 basis point improvement in weighted average coupon compared to January 2024 transaction
- Advance rate of 59.15% for the securitization
Negative
- None.
News Market Reaction
On the day this news was published, CRMT gained 4.31%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
ROGERS, Ark., Oct. 11, 2024 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (the “Company”) announced today that it has completed a term securitization transaction involving the issuance of
ACM Auto Trust 2024-2 issued
“We are pleased with the successful completion of our second term securitization of 2024, with benchmark rate and spread improvements resulting in a 198 basis point improvement in the weighted average coupon compared to our January 2024 transaction,” said Vickie Judy, Chief Financial Officer.
ACM Auto Trust 2024-2 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
America’s Car-Mart operates automotive dealerships in twelve 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 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, please visit our website at www.car-mart.com.
| Contacts: | ||
| Investor_relations@car-mart.com Vickie D. Judy, CFO at (479) 464-9944 | ||
FAQ
What is the total amount of America's Car-Mart's (CRMT) recent term securitization?
What is the weighted average coupon for CRMT's October 2024 securitization?
How does CRMT's October 2024 securitization compare to its January 2024 transaction?
What are the coupon rates for Class A and Class B Notes in CRMT's recent securitization?
