Rogers-based America’s Car-Mart Inc. has completed an asset-backed securities (ABS) transaction that involved issuing $172 million in asset-backed notes with an average coupon of 5.46%, according to a Friday (Aug. 29) news release.
This was the buy here, pay here used car dealer’s eighth securities transaction. ACM Auto Trust 2025-3, an indirect Car-Mart subsidiary, issued $133.34 million in class A notes and $38.62 million in class B notes. The class A notes have a coupon rate of 5.01%, and the class B notes have a coupon rate of 6.08%.
“I am pleased with the favorable outcome of our eighth ABS transaction, reflecting the continued strength of this developing platform,” said Douglas Campbell, CEO of America’s Car-Mart. “There is more that we can and will do to improve the platform as we move forward.”
In May, Car-Mart announced completing its seventh asset-backed securities transaction that included issuing $216 million in asset-backed notes with an average coupon of 6.27%.
“Market interest for our securitizations remains high, with the class A notes almost eight times oversubscribed, and the class B notes nearly 16 times oversubscribed,” said Jonathan Collins, Car-Mart’s chief financial officer. “Strong demand combined with favorable operating performance within our portfolio have significantly improved the pricing of our notes. In fact, this is the fourth consecutive improvement in the overall weighted average coupon, and we have reduced our weighted average spread by 308 basis points (3.08 percentage points) since our 2024-1 transaction, as we continue to lower our financing costs and strengthen our capital efficiency.”
Before the markets open Thursday (Sept. 4), Car-Mart is expected to report an increase in earnings and revenue in the first quarter of fiscal 2026, which ended July 31.
Shares of Car-Mart (NASDAQ: CRMT) closed Friday at $44.81, down $1.67. In the past 52 weeks, the stock has ranged between $36.40 and $62.72.