Credit Acceptance gets $350 million of asset-backed secured financing

By Wendy Van Sickle

Columbus, Ohio, March 1 – Credit Acceptance Corp. entered into a $350 million asset-backed non-recourse secured financing agreement on Feb. 23, according to an 8-K filing with the Securities and Exchange Commission.

Pursuant to the financing, Credit Acceptance contributed loans with a net book value of about $437.8 million to a wholly owned special purpose entity, Credit Acceptance Funding LLC 2017-1, which transferred the loans to a trust that issued three classes of notes.

The asset-backed non-recourse financing will revolve for two years, after which it will amortize based upon the cash flows on the contributed loans.

The financing is expected to have an annualized cost of about 3.1%.

Wells Fargo Bank, NA is the trust collateral agent, indenture trustee and backup servicer.

Southfield, Mich.-based Credit Acceptance provides consumer auto loans.

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