Credit Acceptance Corporation announced on December 5, 2024, that it has increased the amount of its Warehouse Facility V from $200.0 million to $250.0 million. This expansion provides the company with greater financial flexibility and capacity to fund its loan portfolio. The facility's non-revolve date was also extended from December 29, 2025, to December 29, 2027.
The maturity of Warehouse Facility V was extended from December 27, 2027, to December 27, 2029, providing longer-term financing stability. A key benefit of this amendment is the decrease in the interest rate on borrowings under the facility. The rate moved from the Secured Overnight Financing Rate (SOFR) plus 245 basis points to SOFR plus 185 basis points, reducing the cost of capital.
These changes to Warehouse Facility V strengthen Credit Acceptance's overall liquidity position and improve its borrowing terms. The extended duration and lower interest rate contribute positively to the company's financial management. As of December 5, 2024, the company reported no outstanding balance under this facility, indicating available capacity.
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