Credit Acceptance Increases Warehouse Facility to $250M

By Tamara Parker • Wednesday, December 11 06:03 • Permanent Link

Credit Acceptance Corporation (NASDAQ: CACC) has announced a significant increase in its warehouse facility V, raising it from $200.0 million to $250.0 million. The company has also extended the revolving period of the facility from December 29, 2025, to December 29, 2027, and the maturity from December 27, 2027, to December 27, 2029.

Moreover, the interest rate on borrowings under the facility has been reduced from the secured overnight financing rate (SOFR) plus 245 basis points to SOFR plus 185 basis points. As of December 5, 2024, there was no outstanding balance under the facility.

These changes indicate Credit Acceptance Corporation's efforts to secure additional financial flexibility and lower borrowing costs for its operations and expansion. The market has reacted to these announcements by moving the company's shares -0.1% to a price of $494.04. For the full picture, make sure to review Credit Acceptance's 8-K report.

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