Credit Acceptance seals $600M auto-loan securitization
Credit Acceptance Corporation (CACC) entered into a $600.0 million asset-backed non-recourse secured financing backed by consumer auto loans.
Rhea-AI Filing Summary
Credit Acceptance Corporation (CACC) entered into a $600.0 million asset-backed non-recourse secured financing backed by consumer auto loans. Approximately $750.2 million of loans were conveyed to a special purpose entity and then to a trust that issued three note classes: Class A $319.88 million at 5.01%, Class B $117.30 million at 5.29%, and Class C $162.82 million at 5.51%, each priced just below par.
The financing has an expected average annualized cost of about 5.5%, will revolve for 24 months, and then amortize based on loan cash flows. Credit Acceptance plans to use proceeds to repay higher-cost indebtedness and for general corporate purposes4.0% of loan cash flows as a servicing fee, while the remaining 96.0%, net of dealer holdback, will pay note principal, interest, and transaction costs. The debt is non-recourse to Credit Acceptance apart from customary repurchase and indemnification obligations. After this securitization, the company reported about $1.8 billion of unused borrowing capacity on its revolving credit facilities and unrestricted cash.
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8-K Event Classification
4 items: 1.01, 2.03, 8.01, 9.01
4 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Asset-backed financing amount: $600.0 million
Conveyed loan balance: $750.2 million
Class A notes: $319,880,000 at 5.01%
+5 more
8 metrics
Asset-backed financing amount
$600.0 million
Size of the non-recourse secured financing completed August 20, 2026
Conveyed loan balance
$750.2 million
Value of consumer loans conveyed to the special purpose entity
Class A notes
$319,880,000 at 5.01%
Class A amount and interest rate, 2.54-year average life
Class B notes
$117,300,000 at 5.29%
Class B amount and interest rate, 3.23-year average life
Class C notes
$162,820,000 at 5.51%
Class C amount and interest rate, 3.69-year average life
Expected average annualized cost
5.5%
All-in cost of the financing including upfront fees and other costs
Servicing fee
4.0% of cash flows
Portion of loan cash flows paid to the company for servicing
Unused borrowing capacity and cash
$1.8 billion
Unused and available revolving credit capacity and unrestricted cash after the financing
Key Terms
asset-backed non-recourse secured financing, dealer holdback, clean-up call, indenture event of default, +1 more
5 terms
asset-backed non-recourse secured financing financial
"entered into a $600.0 million asset-backed non-recourse secured financing"
dealer holdback financial
"amounts due to dealers for payments of dealer holdback"
A dealer holdback is a small portion of the proceeds from a securities offering that is reserved and later paid to broker-dealers as a delayed sales incentive or reimbursement for distribution costs. Think of it as a post-sale bonus to the middlemen who sold the new shares, similar to a store giving sales staff a commission after a big promotion. For investors, holdbacks affect how aggressively dealers sell new issues, can influence initial pricing and aftermarket liquidity, and therefore subtly shape short-term supply, demand and volatility in the stock.
clean-up call financial
"a limited right to exercise a “clean-up call” option to purchase the consumer loans"
indenture event of default financial
"The Financing may be accelerated upon the occurrence of an “indenture event of default.”"
Investment Company Act of 1940 regulatory
"The Issuer becoming an investment company within the meaning of the Investment Company Act of 1940"
A U.S. federal law that sets the rulebook for pooled investment vehicles such as mutual funds, exchange-traded funds and similar money managers, requiring them to register with regulators, disclose holdings and fees, limit conflicts of interest, and follow governance standards. It matters to investors because these protections and transparency rules act like a referee and scoreboard, helping people compare funds, trust that managers follow fair practices, and spot hidden costs or risks.
FAQ
What financing transaction did CACC announce in this 8-K?
CACC completed a $600.0 million asset-backed non-recourse secured financing, supported by approximately $750.2 million of conveyed consumer auto loans. A trust issued three classes of notes (A, B, and C) with different amounts, average lives, and fixed interest rates.
How will Credit Acceptance (CACC) use the $600 million financing proceeds?
CACC states the financing will be used to repay higher cost outstanding indebtedness and for general corporate purposes, with debt issued by a trust backed by consumer auto loans and structured as non-recourse to the company apart from limited obligations.
What are the key terms of the notes issued in CACC’s 2026-2 securitization?
The trust issued Class A notes of $319.88 million at 5.01% interest, Class B notes of $117.30 million at 5.29%, and Class C notes of $162.82 million at 5.51%, with average lives of 2.54, 3.23, and 3.69 years, respectively.
What is the expected cost and structure of CACC’s new financing?
The financing has an expected average annualized cost of approximately 5.5%, including upfront fees and other costs. It will revolve for 24 months and then amortize based on cash flows from the conveyed consumer loans backing the transaction.
How are loan cash flows allocated under CACC’s securitization?
CACC will receive 4.0% of loan cash flows as a servicing fee. The remaining 96.0%, after dealer holdback payments, will be used to pay principal, interest, and ongoing costs of the notes, preserving dealers’ contractual holdback rights.
What liquidity position did CACC report after completing this financing?
After completing the $600 million securitization, CACC reported maintaining approximately $1.8 billion in unused and available borrowing capacity on its revolving credit facilities and unrestricted cash, according to the company’s press release language.
Is the new securitization debt recourse to Credit Acceptance (CACC)?
The company states the financing creates debt for which the trust is liable, secured by trust assets, and that this debt is non-recourse to Credit Acceptance except for customary limited repurchase and indemnification obligations tied to its roles as seller, servicer, or custodian.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 20, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant’s telephone number, including area code: (248 ) 353-2700
Not Applicable | ||||||||
(Former name or former address, if changed since last report.) | ||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 1.01 Entry into a Material Definitive Agreement.
The information set forth below under Item 2.03 is hereby incorporated by reference into this Item 1.01.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On August 20, 2026, Credit Acceptance Corporation (the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) entered into a $600.0 million asset-backed non-recourse secured financing (the “Financing”). Pursuant to this transaction, we conveyed consumer loans having a value of approximately $750.2 million to a wholly owned special purpose entity, Credit Acceptance Funding LLC 2026-2 (“Funding 2026-2”), which transferred those consumer loans to a trust, which issued three classes of notes:
| Note Class | Amount | Average Life | Price | Interest Rate | |||||||||||||||||||||||||||||||
| A | $ | 319,880,000 | 2.54 | years | 99.99218 | % | 5.01 | % | |||||||||||||||||||||||||||
| B | $ | 117,300,000 | 3.23 | years | 99.97598 | % | 5.29 | % | |||||||||||||||||||||||||||
| C | $ | 162,820,000 | 3.69 | years | 99.98270 | % | 5.51 | % | |||||||||||||||||||||||||||
The Financing will:
•have an expected average annualized cost of approximately 5.5% including upfront fees and other costs;
•revolve for 24 months after which it will amortize based upon the cash flows on the conveyed loans; and
•be used by us to repay higher cost outstanding indebtedness and for general corporate purposes.
We will receive 4.0% of the cash flows related to the underlying consumer loans as a servicing fee to cover our servicing expenses. The remaining 96.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest on the notes as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with dealers and to preserve the dealers’ rights to future payments of dealer holdback.
The notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This Current Report on Form 8-K does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes.
The parties to the Financing are the Company, as servicer, Credit Acceptance Auto Loan Trust 2026-2, as issuer (the “Trust”), Funding 2026-2, as seller, and Computershare Trust Company, N.A., as trust collateral agent, indenture trustee, and backup servicer.
The Financing creates debt for which the Trust is liable and which is secured by all the assets of the Trust. Such debt is non-recourse to the Company (other than customary, limited recourse to the Company in the form of repurchase obligations or indemnification obligations for any violations by the Company of its representations or obligations as seller, servicer, or custodian), even though the Trust, Funding 2026-2, and the Company are consolidated for financial reporting purposes. Except for the servicing fee and payments due to dealers, if the Financing is amortizing, the Company does not have any rights in any portion of such collections until all outstanding principal, accrued and unpaid interest, fees, and other related costs have been paid in full. If the Financing is in its revolving period, Funding 2026-2 is entitled to the portion of such collections available after application of any amounts necessary to acquire additional consumer loans from the Company and to pay accrued interest on the debt and any other transaction expenses, provided that any necessary principal payments are made to compensate for reductions in the balance of eligible loans or reductions in forecasted collections. In addition, in its capacity as servicer of the consumer loans, the Company does have a limited right to exercise a “clean-up call” option to purchase the consumer loans from Funding 2026-2 and/or the Trust under certain specified circumstances.
The Financing may be accelerated upon the occurrence of an “indenture event of default.” An “indenture event of default” includes: a default by the Trust in the payment of interest or principal when due; any breach of covenant or any material breach of representation or warranty that is not cured within a specified time following notice; the occurrence of certain bankruptcy or insolvency events involving the Trust or Funding 2026-2; the failure of cumulative collections on the transferred assets to be more than a threshold percentage of cumulative projected collections for three consecutive collection periods; a transfer by Funding 2026-2 of its ownership of the Trust (other than as permitted by the transaction documents); the failure of Funding 2026-2 to observe in any material respect any of its limited purpose covenants after giving effect to notice and grace periods; the failure of the indenture trustee to have a valid and perfected first priority security interest in a material portion of the Trust’s property if such failure has not been cured within ten business days; the Issuer becoming an investment company within the meaning of the Investment Company Act of 1940; and the cessation of any transaction document to be in full force and effect.
The terms and conditions of this transaction are set forth in the agreements attached hereto as Exhibits 4.148 through 4.153 to this Form 8-K and incorporated herein by reference.
Item 8.01 Other Events.
On August 20, 2026, we issued a press release regarding the Financing. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | ||||
4.148 | Indenture, dated as of August 20, 2026, between Credit Acceptance Auto Loan Trust 2026-2 and Computershare Trust Company, N.A. | ||||
4.149 | Backup Servicing Agreement, dated as of August 20, 2026, among the Company, Credit Acceptance Funding LLC 2026-2, Credit Acceptance Auto Loan Trust 2026-2, and Computershare Trust Company, N.A. | ||||
4.150 | Amended and Restated Intercreditor Agreement dated August 20, 2026, among the Company, CAC Warehouse Funding LLC II, CAC Warehouse Funding LLC IV, CAC Warehouse Funding LLC V, CAC Warehouse Funding LLC VI, CAC Warehouse Funding LLC VIII, Credit Acceptance Funding LLC 2026-2, Credit Acceptance Funding LLC 2026-1, Credit Acceptance Funding LLC 2025-2, Credit Acceptance Funding LLC 2025-1, Credit Acceptance Funding LLC 2024-B, Credit Acceptance Funding LLC 2024-3, Credit Acceptance Funding LLC 2024-2, Credit Acceptance Funding LLC 2024-1, Credit Acceptance Funding LLC 2024-A, Credit Acceptance Funding LLC 2023-5, Credit Acceptance Funding LLC 2023-3, Credit Acceptance Funding LLC 2023-2, Credit Acceptance Funding LLC 2023-1, Credit Acceptance Funding LLC 2022-2, Credit Acceptance Funding LLC 2021-1, Credit Acceptance Funding LLC 2019-2, Credit Acceptance Auto Loan Trust 2026-2, Credit Acceptance Auto Loan Trust 2026-1, Credit Acceptance Auto Loan Trust 2025-2, Credit Acceptance Auto Loan Trust 2025-1, Credit Acceptance Auto Loan Trust 2024-3, Credit Acceptance Auto Loan Trust 2024-2, Credit Acceptance Auto Loan Trust 2024-1, Credit Acceptance Auto Loan Trust 2024-A, Credit Acceptance Auto Loan Trust 2023-5, Credit Acceptance Auto Loan Trust 2023-3, Credit Acceptance Auto Loan Trust 2023-2, Credit Acceptance Auto Loan Trust 2023-1, Computershare Trust Company, N.A., as trustee, Bank of Montreal, as agent, Fifth Third Bank, National Association, as agent, Flagstar Bank, National Association, as agent, Fifth Third Bank, N.A., successor by merger to Comerica Bank, as agent, and Citizens Bank, N.A., as agent. | ||||
4.151 | Sale and Contribution Agreement, dated as of August 20, 2026, between the Company and Credit Acceptance Funding LLC 2026-2. | ||||
4.152 | Amended and Restated Trust Agreement, dated as of August 20, 2026, among Credit Acceptance Funding LLC 2026-2, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company. | ||||
4.153 | Sale and Servicing Agreement, dated as of August 20, 2026, among the Company, Credit Acceptance Auto Loan Trust 2026-2, Credit Acceptance Funding LLC 2026-2, and Computershare Trust Company, N.A. | ||||
99.1 | Press release dated August 20, 2026. | ||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CREDIT ACCEPTANCE CORPORATION | |||||||||||
| Date: August 25, 2026 | By: | /s/ Joseph Billante III | |||||||||
| Joseph Billante III | |||||||||||
| Chief Financial Officer | |||||||||||
CREDIT ACCEPTANCE ANNOUNCES COMPLETION OF
$600.0 MILLION ASSET-BACKED FINANCING
Southfield, Michigan – August 20, 2026 – Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the completion of a $600.0 million asset-backed non-recourse secured financing (the “Financing”). Pursuant to this transaction, we conveyed loans having a value of approximately $750.2 million to a wholly owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes:
Note Class | Amount | Average Life | Price | Interest Rate | |||||||||||||||||||||||||||||||||||||||||||
A | $ | 319,880,000 | 2.54 | years | 99.99218 | % | 5.01 | % | |||||||||||||||||||||||||||||||||||||||
B | $ | 117,300,000 | 3.23 | years | 99.97598 | % | 5.29 | % | |||||||||||||||||||||||||||||||||||||||
C | $ | 162,820,000 | 3.69 | years | 99.98270 | % | 5.51 | % | |||||||||||||||||||||||||||||||||||||||
The Financing will:
•have an expected average annualized cost of approximately 5.5% including upfront fees and other costs;
•revolve for 24 months after which it will amortize based upon the cash flows on the conveyed loans; and
•be used by us to repay higher cost outstanding indebtedness and for general corporate purposes.
We will receive 4.0% of the cash flows related to the underlying consumer loans to cover servicing expenses. The remaining 96.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest on the notes as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with dealers and to preserve the dealers’ rights to future payments of dealer holdback.
Following the completion of this financing, Credit Acceptance maintained approximately $1.8 billion in unused and available borrowing capacity on its revolving credit facilities and unrestricted cash. “We are pleased with the execution of this $600 million securitization, matching the largest ABS transaction in our history,” said Jay Brinkley, Treasurer of Credit Acceptance. “Strong demand from our investor base enabled us to achieve our lowest credit spreads since late 2021, and while the all-in cost increased modestly from our most recent securitization in May, the increase was driven by higher Treasury rates.”
The notes have not been and will not be registered under the Securities Act of 1933 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 of 1933.
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
Filing Exhibits & Attachments
10 documentsPress Releases
Other Documents
- EX-4.148 EX-4.148 707.7 KB
- EX-4.149 EX-4.149 169.2 KB
- EX-4.150 EX-4.150 256.0 KB
- EX-4.151 EX-4.151 172.1 KB
- EX-4.152 EX-4.152 450.4 KB
- EX-4.153 EX-4.153 994.9 KB
- EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 1.8 KB
- EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 21.1 KB
- EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.2 KB