Credit Acceptance Corporation (NASDAQ: CACC) announced Tuesday that it has extended the maturity of its revolving secured line of credit facility while also reducing the interest rate on future borrowings, a move that could provide the auto finance company with greater financial flexibility and lower funding costs.
Under the amended agreement, the maturity date of the facility has been extended by one year to June 22, 2029, from the previous expiration date of June 22, 2028.
The company also secured more favorable borrowing terms from its syndicate of commercial bank lenders. The interest rate on borrowings under the facility was reduced from the Secured Overnight Financing Rate (SOFR) plus 197.5 basis points to SOFR plus 175 basis points.
As of June 9, 2026, Credit Acceptance had approximately $270.5 million outstanding under the revolving credit facility.
The company said there were no other material changes to the terms of the agreement.
The extension provides Credit Acceptance with continued access to liquidity as it supports its financing operations across the United States. The company specializes in providing financing solutions that help automobile dealers sell vehicles to consumers with limited or challenged credit histories.
Credit Acceptance’s business model enables dealerships to expand their customer base by offering financing options to buyers who may not qualify for traditional auto loans. The company works with a nationwide network of automobile dealers and also reports customer payment activity to major credit bureaus, helping consumers build or improve their credit profiles over time.
Market participants often view credit facility extensions and lower borrowing spreads as positive indicators of lender confidence, particularly when companies are able to negotiate improved financing terms in a changing interest rate environment.
Credit Acceptance is headquartered in Southfield, Michigan, and its shares trade on the Nasdaq Stock Market under the ticker symbol CACC.
The company did not disclose any changes to its operational outlook in connection with the credit facility amendment.