Credit Acceptance completes $450M asset-backed financing to refinance debt and support operations

Credit Acceptance Corporation has completed a $450 million asset-backed financing deal by transferring loans worth about $562.6 million to a special purpose entity. The financing involves issuing three classes of notes with interest rates between 4.65% and 5.28%, and an expected average annual cost of 5.2%. The funds will be used to repay higher-cost debt and for general corporate purposes, while preserving dealer relationships and rights. This move helps the company manage its debt more efficiently and supports its vehicle financing business model.