Credit Acceptance Corporation announced significant enhancements to its financing capabilities on September 19, 2024. The company increased its Warehouse Facility II from $400.0 million to $500.0 million. This expansion provides additional capital for its operations and loan portfolio growth.
The non-revolve date for Warehouse Facility II was extended from April 30, 2026, to September 20, 2027. Furthermore, the interest rate on borrowings under this facility decreased from the Secured Overnight Financing Rate (SOFR) plus 230 basis points to SOFR plus 185 basis points, reducing borrowing costs.
Additionally, Credit Acceptance extended its $500.0 million asset-backed non-recourse secured financing, known as Term ABS 2019-2. The non-revolve date for this financing was moved from August 15, 2025, to September 15, 2026, providing longer-term stability. However, the interest rate for Term ABS 2019-2 increased from 5.15% to 5.43%.
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