Credit Acceptance closes $600M asset-backed securitization

Credit Acceptance Corporation (NASDAQ: CACC) announced the completion of a $600.0 million asset-backed non-recourse secured financing, according to a company statement dated Aug. 20, 2026.

The transaction involved the transfer of loans valued at approximately $750.2 million to a wholly owned special purpose entity, which will pass the loans to a trust issuing three classes of notes. The Class A notes total $319.9 million at a 5.01% interest rate with an average life of 2.54 years, the Class B notes total $117.3 million at 5.29% with an average life of 3.23 years, and the Class C notes total $162.8 million at 5.51% with an average life of 3.69 years.

The financing carries an expected average annualized cost of approximately 5.5%, including upfront fees and other costs. It will revolve for 24 months before amortizing based on cash flows from the underlying loans. Proceeds will be used to repay existing higher-cost debt and for general corporate purposes.

Credit Acceptance will retain 4.0% of cash flows from the underlying consumer loans to cover servicing expenses, with the remaining 96.0%, less dealer holdback payments, directed toward principal, interest, and ongoing financing costs.

Following the transaction, the company reported approximately $1.8 billion in unused and available borrowing capacity across its revolving credit facilities and unrestricted cash.

Jay Brinkley, Treasurer of Credit Acceptance, said the deal matched the largest asset-backed securities transaction in the company's history, adding that strong investor demand enabled the company to achieve its lowest credit spreads since late 2021.

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