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SOUTHFIELD, Mich. - Credit Acceptance Corporation (NASDAQ:CACC), a $5.8 billion market cap financial services provider with a strong current ratio of 5.65, announced Wednesday it has extended its $300 million revolving secured warehouse facility by approximately 19 months, pushing the expiration date from December 29, 2026, to July 30, 2028.
The auto finance company also secured more favorable terms, reducing the interest rate on borrowings from the Secured Overnight Financing Rate (SOFR) plus 221.4 basis points to SOFR plus 205 basis points, representing a 16.4 basis point reduction.
Credit Acceptance reported that no funds were drawn on the facility as of Wednesday. No other material changes were made to the terms of the credit arrangement.
The Michigan-based financial services provider specializes in offering vehicle financing solutions through a nationwide network of automobile dealers, focusing on consumers who might otherwise face challenges obtaining traditional auto loans.
The company’s stock trades on the Nasdaq Stock Market under the ticker CACC.
This information was disclosed in a press release statement from Credit Acceptance Corporation.
In other recent news, Credit Acceptance Corporation reported its first-quarter earnings for 2025. The company posted an earnings per share (EPS) of $9.35, which was below the forecasted $9.66. However, Credit Acceptance exceeded revenue expectations with $571.1 million, slightly above the projected $570.97 million. Additionally, the company has extended its $75.0 million revolving secured warehouse facility to 2028, with improved terms including a reduced interest rate from SOFR plus 210 basis points to SOFR plus 185 basis points. The servicing fee was also lowered from 6.0% to 4.0% of collections on consumer loans. In governance developments, Credit Acceptance held its Annual Meeting of Shareholders, where six directors were elected to serve until 2026. The meeting also included an advisory vote approving the compensation of named executive officers. These developments reflect ongoing strategic adjustments and governance decisions at Credit Acceptance.
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