America’s Car-Mart issued $200 million in asset-backed notes, improving coupon rates amid strong demand for the securitization.
Quiver AI Summary
America’s Car-Mart, Inc. announced the successful completion of a $200 million term securitization transaction, issuing asset-backed notes with a weighted average coupon of 6.49%. The transaction involved $150.77 million of Class A Notes at a 5.38% coupon rate and $49.23 million of Class B Notes at a 7.87% rate. This securitization was over 10 times oversubscribed, reflecting improved investor confidence and a 95 basis point improvement in the weighted average coupon compared to the previous October 2024 securitization. CFO Vickie Judy noted that this achievement showcases the quality of their asset portfolio, which has been enhanced by their new loan origination system. The notes are unregistered under the Securities Act and cannot be offered or sold in the U.S. without proper registration.
Potential Positives
- Completion of a $200 million term securitization transaction demonstrates strong capital market confidence and liquidity for the company.
- The weighted average coupon improvement of 95 basis points from the prior securitization indicates enhanced asset quality and investor demand.
- The oversubscription of the transaction by over 10 times highlights significant interest from investors, reflecting strong market validation of the company's business model.
Potential Negatives
- The press release indicates that the notes have not been registered under the Securities Act, which may limit the company's ability to offer or sell these notes more broadly in the future.
- While the weighted average coupon improved, it still remains relatively high at 6.49%, which could reflect underlying risks associated with the company's financing structure.
- The mention of a migration to a new loan origination system may signal potential operational challenges or uncertainty during the transition period, which could affect performance.
FAQ
What is the recent asset-backed notes transaction by America’s Car-Mart?
America’s Car-Mart completed a term securitization transaction issuing $200 million in asset-backed notes with an overall weighted average coupon of 6.49%.
How much did the weighted average coupon improve?
The weighted average coupon improved by 95 basis points compared to the October 2024 securitization transaction.
What classes of notes were issued in the securitization?
ACM Auto Trust 2025-1 issued $150.77 million of Class A Notes with a coupon of 5.38% and $49.23 million of Class B Notes with a coupon of 7.87%.
Who is the CFO of America’s Car-Mart?
Vickie Judy is the Chief Financial Officer (CFO) of America’s Car-Mart, Inc.
What is the focus of America’s Car-Mart's business?
America’s Car-Mart operates automotive dealerships specializing in the “Integrated Auto Sales and Finance” segment of the used car market.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CRMT Insider Trading Activity
$CRMT insiders have traded $CRMT stock on the open market 5 times in the past 6 months. Of those trades, 5 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $CRMT stock by insiders over the last 6 months:
- ADAM K PETERSON purchased 813,953 shares for an estimated $34,999,979
- JONATHAN Z BUBA purchased 232,558 shares for an estimated $9,999,994
- JOSHUA G WELCH purchased 23,255 shares for an estimated $999,965
- ANN G. BORDELON purchased 1,232 shares for an estimated $52,976
- DAWN C MORRIS purchased 116 shares for an estimated $4,988
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CRMT Hedge Fund Activity
We have seen 65 institutional investors add shares of $CRMT stock to their portfolio, and 60 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MAGNOLIA GROUP, LLC added 813,953 shares (+105.9%) to their portfolio in Q3 2024, for an estimated $34,120,909
- FMR LLC removed 542,642 shares (-60.2%) from their portfolio in Q3 2024, for an estimated $22,747,552
- NANTAHALA CAPITAL MANAGEMENT, LLC added 232,558 shares (+74.5%) to their portfolio in Q3 2024, for an estimated $9,748,831
- PRESCOTT GROUP CAPITAL MANAGEMENT, L.L.C. added 219,194 shares (+629.1%) to their portfolio in Q3 2024, for an estimated $9,188,612
- JEFFERIES FINANCIAL GROUP INC. added 215,000 shares (+inf%) to their portfolio in Q3 2024, for an estimated $9,012,800
- NORTH REEF CAPITAL MANAGEMENT LP added 210,407 shares (+inf%) to their portfolio in Q3 2024, for an estimated $8,820,261
- GOLDMAN SACHS GROUP INC added 126,219 shares (+238.2%) to their portfolio in Q3 2024, for an estimated $5,291,100
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Weighted average coupon improved 95 basis points from prior October 2024 securitization
Transaction over 10 times oversubscribed
ROGERS, Ark., Feb. 03, 2025 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), announced today that it has completed a term securitization transaction involving the issuance of $200 million in principal amount of asset-backed notes with an overall weighted average coupon of 6.49%.
ACM Auto Trust 2025-1 issued $150.77 million of Class A Notes and $49.23 million of Class B Notes. The Class A Notes have a coupon rate of 5.38% and the Class B Notes have a coupon rate of 7.87%.
“We are encouraged by the strong demand for our 2025-1 securitization. Compared to our October 2024 securitization, the weighted average coupon improved by 95 basis points. We believe this reflects confidence in our asset quality, particularly as the portfolio continues to benefit from the migration to our new loan origination system (LOS),” said Vickie Judy, Chief Financial Officer.
ACM Auto Trust 2025-1 is an indirect subsidiary of the Company. The notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
About America’s Car-Mart, Inc.
America’s Car-Mart, Inc. (the “Company”) operates automotive dealerships in 12 states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States, selling quality used vehicles and providing financing for substantially all of its customers. For more information about America’s Car-Mart, including investor presentations, please visit our website at www.car-mart.com .
Contact:
Vickie Judy, CFO
479-464-9944
[email protected]