Credit Acceptance extends its warehouse facility to 2028, reducing interest and servicing fees while maintaining other terms.
Quiver AI Summary
Credit Acceptance Corporation announced an extension of its $75 million revolving secured warehouse facility's maturity date from September 30, 2026, to September 30, 2028, with a reduced interest rate from SOFR plus 210 basis points to SOFR plus 185 basis points. Additionally, the servicing fee has decreased from 6.0% to 4.0% of collections on the underlying consumer loans, while no other significant changes were made to the facility's terms. As of July 11, 2025, there was no outstanding balance under the facility. Credit Acceptance enables vehicle ownership by providing financing solutions for consumers with varying credit histories through a network of automobile dealers, helping improve consumers' credit scores and access to traditional financing options. The company is publicly traded on Nasdaq under the symbol CACC.
Potential Positives
- The extension of the revolving secured warehouse facility's term from September 30, 2026, to September 30, 2028, provides the company with increased financial flexibility for a longer period.
- The reduction in the interest rate from SOFR plus 210 basis points to SOFR plus 185 basis points is a positive development that can reduce borrowing costs for the company.
- Lowering the servicing fee from 6.0% to 4.0% of collections can enhance profitability and improve the financial efficiency of the company's financing operations.
- The announcement highlights the company's commitment to providing financing solutions to consumers with varied credit histories, reinforcing its positive reputation and customer base in the automotive financing market.
Potential Negatives
- Extending the revolving secured warehouse facility by two years may indicate a need for additional time to manage liabilities or reliance on borrowed funds, which could raise concerns among investors about the company's financial stability.
- While the interest rate decrease may seem favorable, the reduction of fees and terms could suggest tight margins, potentially impacting profit if revenue generation does not increase.
- The fact that there was no outstanding balance under the facility as of the announcement date may highlight underutilization of available financing options, possibly reflecting a slowdown in business activity or demand for their services.
FAQ
What recent financial change did Credit Acceptance Corporation announce?
Credit Acceptance announced an extension of its $75 million revolving secured warehouse facility to September 30, 2028, with a reduced interest rate.
How has the interest rate changed for the warehouse facility?
The interest rate has decreased from SOFR plus 210 basis points to SOFR plus 185 basis points.
What is the new servicing fee for Credit Acceptance's facility?
The servicing fee has been reduced from 6.0% to 4.0% of collections on the underlying consumer loans.
What does Credit Acceptance Corporation do?
Credit Acceptance provides innovative financing solutions to enable automobile dealers to sell vehicles to consumers regardless of their credit history.
How does Credit Acceptance help improve consumer credit scores?
By reporting to credit agencies, Credit Acceptance helps consumers improve their credit scores and access more traditional financing options.
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.
$CACC Insider Trading Activity
$CACC insiders have traded $CACC stock on the open market 22 times in the past 6 months. Of those trades, 0 have been purchases and 22 have been sales.
Here’s a breakdown of recent trading of $CACC stock by insiders over the last 6 months:
- GENERAL PARTNERS LLC PRESCOTT has made 0 purchases and 9 sales selling 76,770 shares for an estimated $38,086,334.
- JILL FOSS WATSON has made 0 purchases and 10 sales selling 20,000 shares for an estimated $10,799,406.
- DOUGLAS W BUSK (Chief Treasury Officer) sold 3,000 shares for an estimated $1,547,910
- ANDREW K ROSTAMI (Chief Mktg and Product Officer) sold 375 shares for an estimated $189,483
- NICHOLAS J ELLIOTT (Chief Alignment Officer) sold 300 shares for an estimated $150,600
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CACC Hedge Fund Activity
We have seen 128 institutional investors add shares of $CACC stock to their portfolio, and 95 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- HSBC HOLDINGS PLC removed 92,108 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $47,559,965
- CROW'S NEST HOLDINGS LP removed 75,000 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $38,726,250
- KHROM CAPITAL MANAGEMENT LLC added 59,337 shares (+inf%) to their portfolio in Q1 2025, for an estimated $30,638,659
- HOLOCENE ADVISORS, LP added 56,432 shares (+1067.0%) to their portfolio in Q1 2025, for an estimated $29,138,663
- MILLENNIUM MANAGEMENT LLC removed 42,040 shares (-96.8%) from their portfolio in Q1 2025, for an estimated $21,707,354
- WEALTHFRONT ADVISERS LLC removed 38,653 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $19,958,476
- POINT72 ASSET MANAGEMENT, L.P. added 37,291 shares (+1928.2%) to their portfolio in Q1 2025, for an estimated $19,255,207
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$CACC Analyst Ratings
Wall Street analysts have issued reports on $CACC in the last several months. We have seen 0 firms issue buy ratings on the stock, and 1 firms issue sell ratings.
Here are some recent analyst ratings:
- TD Cowen issued a "Sell" rating on 01/31/2025
To track analyst ratings and price targets for $CACC, check out Quiver Quantitative's $CACC forecast page.
$CACC Price Targets
Multiple analysts have issued price targets for $CACC recently. We have seen 2 analysts offer price targets for $CACC in the last 6 months, with a median target of $475.0.
Here are some recent targets:
- Moshe Orenbuch from TD Cowen set a target price of $450.0 on 01/31/2025
- Kyle Joseph from Stephens & Co. set a target price of $500.0 on 01/31/2025
Full Release
Southfield, Michigan, July 11, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that we extended the date on which our $75.0 million revolving secured warehouse facility will cease to revolve from September 30, 2026, to September 30, 2028. The interest rate on borrowings under the facility has decreased from the Secured Overnight Financing Rate (“SOFR”) plus 210 basis points to SOFR plus 185 basis points. The amendment has also decreased the servicing fee from 6.0% to 4.0% of collections on the underlying consumer loans. There were no other material changes to the terms of the facility.
As of July 11, 2025, we did not have a balance outstanding under the facility.
Description of Credit Acceptance Corporation
We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.
Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com .
