Credit Acceptance Corp Announces $600M Asset-Backed Financing

What Happened
Credit Acceptance Corporation announced on its Form 8-K that on August 20, 2026 it completed a $600.0 million asset-backed, non-recourse secured financing. The company conveyed approximately $750.2 million of consumer loans to a wholly owned special-purpose entity (Credit Acceptance Funding LLC 2026-2), which transferred the loans to Credit Acceptance Auto Loan Trust 2026-2; the Trust issued three classes of notes to fund the transaction. Computershare Trust Company, N.A. serves as trust collateral agent, indenture trustee and backup servicer.

Key Details

• Total financing: $600.0 million; underlying consumer loans conveyed: approx. $750.2 million.
• Note classes issued:
  • Class A: $319,880,000, avg life 2.54 years, interest ~5.01%, priced ~99.99218
  • Class B: $117,300,000, avg life 3.23 years, interest ~5.29%, priced ~99.97598
  • Class C: $162,820,000, avg life 3.69 years, interest ~5.51%, priced ~99.98270
• Expected average annualized cost to Credit Acceptance: ~5.5% (includes upfront fees and costs).
• Structure and mechanics: 24‑month revolving period, then amortization based on loan cash flows; Credit Acceptance receives a 4.0% servicing fee and the remaining collections (96.0%), less dealer holdback, pay principal/interest and transaction costs. Debt is non‑recourse to the company except for customary repurchase/indemnity obligations; the Trust, Funding 2026‑2, and the company are consolidated for financial reporting.
• Notes are unregistered under the Securities Act and not offered for sale in the U.S. absent registration or an exemption. A press release about the Financing was attached as Exhibit 99.1 to the 8‑K.

Why It Matters
This transaction provides Credit Acceptance with $600M of secured funding intended to repay higher‑cost indebtedness and support general corporate needs, while preserving dealer payment rights and maintaining the company’s servicing role (with a 4% servicing fee). For investors, key takeaways are the size and cost of the new financing (~5.5% blended cost), the 24‑month revolving feature that supports short‑term liquidity, and the limited legal non‑recourse nature of the financing — although the entities are consolidated for financial reporting, which may affect reported leverage and asset/debt presentation on the company’s financial statements.