Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Credit Acceptance Corp. > News item |
Credit Acceptance enters $200 million asset-back secured financing
By Marisa Wong
Los Angeles, Dec. 21 – Credit Acceptance Corp. entered into a $200 million asset-back non-recourse secured financing on Dec. 15, according to an 8-K filing with the Securities and Exchange Commission.
Under the financing, the company contributed about $250.1 million of loans to a wholly owned special purpose entity, Credit Acceptance Funding 2022-2 that pledged the loans to an institutional lender under a loan and security agreement.
The loan bears interest at SOFR plus 235 basis points; has a 36-month revolving period after which it will amortize based upon the cash flows on the contributed loans; and may be used to repay outstanding debt and for general corporate purposes.
The company will receive 4% of the cash flows related to the underlying consumer loans to cover servicing expenses. The remaining 96%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest to the institutional lender as well as the ongoing costs of the financing.
Bank of Montreal is the collateral agent and a lender.
BMO Capital Markets Corp. is deal agent.
Computershare Trust Co., NA is backup servicer.
Southfield, Mich.-based Credit Acceptance provides consumer auto loans.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.