- Credit Acceptance ( NASDAQ: CACC ) said Thursday it completed a $389.9M asset-backed non-recourse secured financing.
- The company contributed loans worth ~$500.1M to a wholly-owned special purpose entity.
- The entity will transfer the loans to a trust, which will issue four classes of notes.
- The financing will have an expected annualized cost of ~8.5%, revolve for 24 months after which it will amortize based on cash flows on the contributed loans, and be used to repay outstanding indebtedness.
- Credit Acceptance ( CACC ) will receive 4% of the cash flows related to the underlying consumer loans to cover servicing expenses.
- The remaining 96% will be used to pay principal and interest on the notes as well as ongoing financing costs.
For further details see:
Credit Acceptance completes $389.9M asset-backed financing