Credit Acceptance Corporation announced on July 11, 2025, that it extended the non-revolve date of its $75.0 million revolving secured warehouse facility. The date was moved from September 30, 2026, to September 30, 2028, providing longer-term access to this funding. This extension enhances the company's financial planning horizon.
The interest rate on borrowings under this facility decreased from the Secured Overnight Financing Rate (SOFR) plus 210 basis points to SOFR plus 185 basis points. This reduction in borrowing costs improves the profitability of loans funded through this facility. Additionally, the servicing fee decreased from 6.0% to 4.0% of collections on the underlying consumer loans.
These improved terms, including a lower interest rate and reduced servicing fee, positively impact Credit Acceptance's cost of capital. As of July 11, 2025, the company had no outstanding balance under the facility, indicating available capacity. This strategic extension and cost reduction support the company's financial efficiency.
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