America's Car-Mart, Inc. recently completed a $200 million term securitization transaction, issuing $150.77 million of class A notes and $49.23 million of class B notes. The overall weighted average coupon for the asset-backed notes was 6.49%, with the class A notes carrying a coupon rate of 5.38% and the class B notes at 7.87%. This transaction saw a significant improvement compared to the prior October 2024 securitization, with the weighted average coupon improving by 95 basis points.
The company's Chief Financial Officer, Vickie Judy, highlighted the strong demand for the 2025-1 securitization, attributing the improved coupon to confidence in the company's asset quality, particularly as the portfolio benefits from the migration to a new loan origination system. This improvement in the weighted average coupon reflects positively on the company's performance and the market's perception of its assets.
America's Car-Mart, Inc. operates automotive dealerships in 12 states and is one of the largest publicly held automotive retailers in the United States. The company focuses exclusively on the "integrated auto sales and finance" segment of the used car market, emphasizing superior customer service and building strong personal relationships with its customers. Following these announcements, the company's shares moved 3.1%, and are now trading at a price of $49.06. For the full picture, make sure to review America's Car-Mart's 8-K report.
