AMERICAS CARMART INC 8-K

What Happened

• On December 17, 2025, affiliates of America’s Car-Mart, Inc. completed a securitization transaction issuing $161,264,000 of asset-backed, non-recourse notes through ACM Auto Trust 2025-4. The transaction conveyed $285,423,197 of installment-sale receivables originated by the company. Net proceeds after fees and discounts were approximately $159.7 million. The company filed an 8-K on December 23, 2025 and issued a press release on December 18, 2025 announcing the transaction.

Key Details

• Notes issued: Class A $128,155,000 (5.87%, S&P A(sf)); Class B $33,109,000 (8.42%, S&P BBB(sf)).
• Receivables sold: $285,423,197; net proceeds to the company: ≈ $159.7 million.
• Parties: Seller — Colonial Auto Finance, Inc.; Depositor — ACM Funding, LLC; Issuer — ACM Auto Trust 2025-4; Trustee — Deutsche Bank National Trust Company; Servicer — America’s Car-Mart, Inc.
• Payment schedule & maturities: monthly interest/principal payments due on the 20th starting Jan 20, 2026; Class A matures May 20, 2030; Class B matures Aug 20, 2032.
• Credit support: over-collateralization, a reserve account initially at least 2.00% of pool balance, excess interest, and subordination; servicer fee = 4.00% (annualized) of outstanding receivables.
• Notes sold initially to Deutsche Bank Securities Inc. and reoffered only to Qualified Institutional Buyers under Rule 144A.

Why It Matters

• This transaction provided America’s Car-Mart with roughly $160 million in cash for general corporate purposes and to fund required reserve and collection accounts, improving near-term liquidity.
• The issuance creates a new, structured financing obligation (non-recourse to the seller) with defined interest costs, maturities and ratings that investors should consider when assessing the company’s funding mix and interest expense.
• Key investor-watch items: monthly payment obligations starting Jan 20, 2026, the 4.00% servicing fee, the credit enhancement structure, and potential acceleration triggers in case of default under the indenture.