Credit Acceptance Corp Extends ABS & Warehouse Financing; Rates Changed

What Happened

• Credit Acceptance Corporation (CACC) filed an 8‑K (filed Sept 21, 2026) disclosing two amendments dated Sept 15, 2026 to its asset-backed and warehouse financing arrangements.
• Amendment No. 4 to Term ABS 2019‑2 (with Wells Fargo Bank, N.A.) extends the date the facility will cease to revolve from Sept 15, 2026 to Sept 15, 2028 and raises the interest rate from 5.43% to 5.83%.
• Amendment No. 4 to the Loan and Security Agreement for Warehouse Facility II (with Wells Fargo and Computershare Trust Company, N.A.) extends the scheduled amortization date from Sept 20, 2027 to Sept 15, 2028 and reduces the borrowing margin from SOFR + 185 bps to SOFR + 175 bps. As of Sept 15, 2026, $180.0 million was outstanding under Warehouse Facility II. A press release about the amendments was also attached.

Key Details

• Term ABS 2019‑2: $500.0 million asset-backed, non‑recourse secured financing; revolving end date extended to Sept 15, 2028; interest rate increased from 5.43% → 5.83%.
• Warehouse Facility II: scheduled amortization extended to Sept 15, 2028; interest on borrowings reduced from SOFR +185 bps → SOFR +175 bps; $180.0 million outstanding as of Sept 15, 2026.
• Counterparties noted: Wells Fargo Bank, N.A. (lender/agent) and Computershare Trust Company, N.A. (trustee/agent); filing states no other material changes to the facilities.

Why It Matters

• These amendments preserve and extend CACC’s near‑term access to secured funding used to finance its dealer/customer receivables, providing liquidity runway through mid‑September 2028.
• The changes have mixed cost effects: Term ABS borrowing cost rose modestly (40 bps increase), while the warehouse facility’s spread tightened (10 bps reduction vs. prior margin over SOFR).
• For investors, the amendments signal continuity of CACC’s financing relationships with major counterparties (Wells Fargo, Computershare) and avoid an imminent funding rollover at the prior Sept 2026/2027 dates; there were no other material contract changes disclosed.