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Credit Acceptance Announces Extension of $100.0 Million Asset-Backed Financing

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Southfield, Michigan, Jan. 15, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC)...

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AI Summary

Credit Acceptance Corporation has successfully extended its $100 million financing facility to January 2028, reducing the interest rate from SOFR +220 bps to SOFR +140 bps. This development enhances the company's financial flexibility and may boost vehicle sales for dealers engaging customers with poor credit histories, potentially leading to improved stock performance for CACC.

Sentiment Rationale

The financing extension and reduced interest rate can lead to lower costs and enhanced sales capabilities, similar to past instances where financial restructuring led to stock price gains in other financial firms.

Trading Thesis

CACC's financing extension and lower interest rate suggest bullish potential in the near future.

Market-Moving

  • Extension of financing provides CACC greater liquidity for growth.
  • Lower borrowing costs may enhance profit margins and overall financial health.
  • CACC’s financing helps improve consumer access to vehicles, driving sales.
  • Positive investor sentiment expected after financing amendment news.

Key Facts

  • CACC extended $100 million asset-backed financing to January 2028.
  • Interest rate on borrowings decreased from SOFR +220 bps to SOFR +140 bps.
  • Financing provides dealers access to buyers with poor credit histories.
  • No other significant changes were made to the financing terms.
  • CACC supports consumers in improving credit scores via their programs.

Companies Mentioned

  • Credit Acceptance Corporation (CACC): Significant financing terms adjustment improves liquidity and growth prospects.

Corporate Developments

This news fits under 'Corporate Developments' as it involves key financing changes that influence CACC's operational capabilities and market positioning. Such changes could substantially impact investor sentiment and stock performance due to the lower cost of capital and extended financing options.

Credit Acceptance Extends $100 Million Asset-Backed Financing

Southfield, Michigan, January 15, 2026 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) has announced the extension of its $100 million asset-backed non-recourse secured financing, initially established on January 29, 2021. This financing, referred to as Term ABS 2021-1, has had its revolving period extended from February 17, 2026, to January 18, 2028, providing additional liquidity and stability for the company.

Details of the Financing Extension

As a result of the amendment effecting this extension, the interest rate on borrowings under the financing has been reduced from the Secured Overnight Financing Rate (SOFR) plus 220 basis points to SOFR plus 140 basis points. Importantly, there have been no other material changes to the terms of the financing.

About Credit Acceptance Corporation

Credit Acceptance is dedicated to making vehicle ownership accessible through its innovative financing solutions. By enabling automobile dealers to sell vehicles to consumers with varied credit histories, Credit Acceptance plays a pivotal role in the automotive market. The company’s financing programs are available through a national network of dealers who benefit from increased vehicle sales to customers who might otherwise be unable to secure financing.

Benefits of Credit Acceptance's Financing Programs

  • Enables consumers to purchase reliable vehicles.
  • Supports repeat and referral sales for automobile dealers.
  • Helps consumers improve their credit scores by reporting to the three major credit agencies.
  • Allows customers to eventually qualify for traditional financing options.

Without these financing solutions, many consumers face significant challenges, often left with unreliable vehicle options or unable to purchase a vehicle entirely. By participating in the Credit Acceptance program, consumers not only secure reliable transportation but also an opportunity to enhance their financial well-being.

Conclusion and Company Information

Credit Acceptance is publicly traded on the Nasdaq stock market under the symbol CACC. For more information about their financing programs and corporate mission, you can visit creditacceptance.com.

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