America's Car-Mart completed a $216 million asset-backed notes securitization, improving financing costs with a 6.27% average coupon.
Quiver AI Summary
America’s Car-Mart, Inc. has successfully completed a term securitization transaction, issuing $216 million in asset-backed notes with a weighted average coupon of 6.27%. This includes $165.18 million in Class A Notes with a 5.55% coupon and $50.82 million in Class B Notes with a 7.25% coupon. CEO Douglas Campbell expressed satisfaction with the results of their seventh ABS transaction and noted an increase in market confidence, as reflected by improved pricing and demand. CFO Jonathan Collins highlighted that the weighted average coupon has improved by 22 basis points since January 2025 and by 107 basis points from the previous October. The notes will not be registered under the Securities Act and cannot be sold in the U.S. without proper registration or exemptions. America’s Car-Mart operates automotive dealerships focused on the used car market in 12 states, emphasizing customer service and strong relationships.
Potential Positives
- America's Car-Mart successfully completed a $216 million term securitization transaction, indicating strong demand and confidence in its financial health.
- The overall weighted average coupon of 6.27% represents an improvement in financing costs, which is beneficial for the company's capital efficiency.
- The Class A Notes issued at a lower coupon rate of 5.55% demonstrates favorable market conditions for the company's debt instruments.
- This transaction marks the company's seventh ABS issuance, showcasing its ongoing capability to manage and optimize its financing strategies effectively.
Potential Negatives
- The securitization transaction involves a significant amount of debt issuance ($216 million), which could raise concerns about the company's overall leverage and financial stability.
- The Class B Notes have a higher coupon rate (7.25%) compared to the Class A Notes (5.55%), indicating that the company may be facing higher costs for certain classes of debt, potentially reflecting higher risk perceptions among investors.
- The notes are not registered under the Securities Act, which may limit their marketability and could deter some investors, impacting the company's ability to raise funds in the future.
FAQ
What is the recent financial transaction announced by America’s Car-Mart?
America’s Car-Mart announced a term securitization transaction issuing $216 million in asset-backed notes with an average coupon of 6.27%.
What are the coupon rates for the Class A and Class B notes?
The Class A Notes have a coupon rate of 5.55%, while the Class B Notes have a rate of 7.25%.
How does this issuance compare to previous securitizations?
The weighted average coupon improved by 22 basis points from January 2025 and 107 basis points from October 2024 issuances.
Is the issuance of these notes registered under the Securities Act?
No, the notes have not been registered under the Securities Act and cannot be offered or sold in the U.S. without registration.
What services does America’s Car-Mart provide?
America’s Car-Mart operates automotive dealerships focused on used car sales and financing, emphasizing superior customer service.
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:
- JONATHAN Z BUBA has made 3 purchases buying 100,000 shares for an estimated $4,383,505 and 0 sales.
- JOSHUA G WELCH has made 2 purchases buying 12,000 shares for an estimated $509,165 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CRMT Hedge Fund Activity
We have seen 62 institutional investors add shares of $CRMT stock to their portfolio, and 77 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- RANGER INVESTMENT MANAGEMENT, L.P. removed 233,382 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $11,960,827
- JEFFERIES FINANCIAL GROUP INC. removed 215,000 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $11,018,750
- ALYESKA INVESTMENT GROUP, L.P. removed 122,475 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $6,276,843
- CITADEL ADVISORS LLC added 120,476 shares (+193.0%) to their portfolio in Q1 2025, for an estimated $5,468,405
- NANTAHALA CAPITAL MANAGEMENT, LLC added 100,000 shares (+18.4%) to their portfolio in Q1 2025, for an estimated $4,539,000
- ROYCE & ASSOCIATES LP removed 87,700 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $3,980,703
- PORTOLAN CAPITAL MANAGEMENT, LLC removed 76,264 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $3,908,530
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
ROGERS, Ark., May 30, 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 $216 million in principal amount of asset-backed notes with an overall weighted average coupon of 6.27%.
ACM Auto Trust 2025-2 issued $165.18 million of Class A Notes and $50.82 million of Class B Notes. The Class A Notes have a coupon rate of 5.55% and the Class B Notes have a coupon rate of 7.25%.
“I am very pleased with the outcome on our seventh ABS transaction,” said Douglas Campbell, Chief Executive Officer of America’s Car-Mart.
“We continue to see strong demand and improved pricing for our securitizations, which reflects growing market confidence in our portfolio. The weighted average coupon improved by 22 basis points to 6.27% compared to our January 2025 issuance and by 107 basis points from our October 2024 issuance. Our work here continues to lower our financing costs and strengthen our capital efficiency,” said Jonathan Collins, Chief Financial Officer.
ACM Auto Trust 2025-2 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:
SM Berger & Company
Andrew Berger, Managing Director
[email protected]
(216) 464-6400
