America’s Car-Mart (CRMT) has released an update to notify the public and investors about an entry into a material definitive agreement.
On January 31, 2024, America’s Car-Mart, Inc. affiliates issued $183.19 million of 7.71% Class A and $66.81 million of 11.40% Class B Asset Backed Notes through a securitization transaction by ACM Auto Trust 2024-1, collateralized by loans from the Company’s subsidiaries. The proceeds, after deductions, totaled approximately $248.2 million and will be used to repay debt and fund reserves for noteholders. S&P rated the Class A and B Notes A (sf) and BBB (sf), respectively. Notes mature on January 21, 2031, with interest and principal payments starting February 20, 2024. The sale, conducted under Rule 144A, involves credit enhancements including over-collateralization and a reserve account.
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For a comprehensive understanding of the announcement, you can read the full document here.
