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America’s Car-Mart, Inc. Announces Pricing of Inaugural Asset-Backed Securitization Transaction and Amendment to Loan and Security Agreement
ROGERS, Ark., April 25, 2022 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (the “Company”) today announced that it has priced $400 million in
About this update from America's Car-mart, Inc.
[{"type":"text","content":"ROGERS, Ark., April 25, 2022 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (the “Company”) today announced that it has priced $400 million in aggregate principal amount of asset-backed notes (the “Notes”), a subprime auto loan asset-backed securitization transaction. The Notes will be issued in four classes, collateralized by loans directly originated by the Company’s operating subsidiaries, America’s Car Mart, Inc. and Texas Car-Mart, Inc. (collectively “Car Mart”), with expected ratings of AA- through BB- by Kroll Bond Rating Agency (“KBRA”), and have a final maturity date of April 20, 2029. Credit enhancement for the Notes will consist of overcollateralization, a reserve account funded with an initial amount of not less than 2.00% of the pool balance as of the cut-off date, excess interest on the receivables, and, in the case of the Class A Notes, the Class B Notes and the Class C Notes, the subordination of certain payments to the noteholders of less senior classes of notes. Additional details related to the Notes are as follows: Initial Principal AmountInitial Credit EnhancementFixed Coupon Rate (per annum)Preliminary KBRA Rating(1)Class A Notes$236,000,00060.70%3.23%AA- (sf)Class B Notes 52,000,00051.60%4.47%A- (sf)Class C Notes 74,570,00038.55%5.48%BBB- (sf)Class D Notes 37,430,00032.00%8.58%BB- (sf)Total$400,000,000 (1) KBRA appends an (sf) indicator to ratings assigned to structured finance obligations. The Notes were priced with a weighted average fixed coupon rate of 5.14% per annum to the expected clean-up call. The Notes will be issued by ACM Auto Trust 2022-1 (the “Issuer”), an indirect subsidiary of the Company. The Issuer will be the sole obligor of the Notes; the Notes will not be obligations of or guaranteed by the Company or any of its other affiliates or subsidiaries. Car Mart will act as the servicer of the auto loan receivables securing the Notes. The net proceeds from the Notes will be used to pay outstanding debt, make the initial deposit into a reserve account, and for other general purposes. The expected settlement date for the transaction is April 27, 2022. “We are excited to diversify our funding sources by entering the securitization market. This transaction represents an important step as we prepare for continuing growth,” said Jeff Williams, President and Chief Executive Officer of th...