CACC - Credit Acceptance announces completion of $400M asset-backed financing

2023-03-16 16:10:05 ET

• Credit Acceptance ( NASDAQ: CACC ) has announced the completion of a $400M asset-backed non-recourse secured financing.
• Pursuant to this transaction, the Co. contributed loans having a value of ~$500.2M to a wholly-owned special purpose entity which will transfer the loans to a trust.
• The financing will have an expected annualized cost of ~7.3% including the initial purchasers’ fees and other costs.
• Also will revolve for 24 months after which it will amortize based upon the cash flows on the contributed loans; and be used by us to repay outstanding indebtedness and for general corporate purposes.

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