Americas Car-Mart Enters Material Definitive Agreement

TL;DR

ACM inked a big deal on Jan 31, 2025 - check the 8-K.

AI Summary

On January 31, 2025, Americas Car-Mart, Inc. entered into a material definitive agreement related to a direct financial obligation. The company, incorporated in Texas with IRS number 630851141, filed this 8-K report on February 5, 2025.

Why It Matters

This filing indicates a significant financial commitment or obligation for Americas Car-Mart, Inc., which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and direct financial obligations can introduce financial risks and obligations that require careful management.

Key Players & Entities

• AMERICAS CAR-MART, INC. (company) — Registrant
• 0000799850 (company) — Central Index Key
• 63-0851141 (company) — IRS Number
• TX (company) — State of Incorporation
• January 31, 2025 (date) — Date of earliest event reported
• February 5, 2025 (date) — Filing Date

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share CRMT NASDAQ Global Select M
• $150,770,000 — uance and sale in a private offering of $150,770,000 aggregate principal amount of 5.38% Cla
• $49,230,000 — Backed Notes (the "Class A Notes") and $49,230,000 aggregate principal amount of 7.87% Cla
• $337,286,838 — ompany. The Notes are collateralized by $337,286,838 of accounts receivable related to insta
• $198.5 million — and other expenses) were approximately $198.5 million and are being used to pay outstanding d

Filing Documents

• f8k_020525.htm (8-K) — 30KB
• exh_41.htm (EX-4.1) — 518KB
• exh_101.htm (EX-10.1) — 122KB
• exh_102.htm (EX-10.2) — 432KB
• exh_991.htm (EX-99.1) — 3KB
• 0001171843-25-000643.txt ( ) — 1514KB
• crmt-20250131.xsd (EX-101.SCH) — 3KB
• crmt-20250131_lab.xml (EX-101.LAB) — 33KB
• crmt-20250131_pre.xml (EX-101.PRE) — 22KB
• f8k_020525_htm.xml (XML) — 4KB

01

Item 1.01. Entry into a Material Definitive Agreement. On January 31, 2025, affiliates of America's Car-Mart, Inc. (the "Company") completed a securitization transaction (the "Securitization Transaction"), which involved the issuance and sale in a private offering of $150,770,000 aggregate principal amount of 5.38% Class A Asset Backed Notes (the "Class A Notes") and $49,230,000 aggregate principal amount of 7.87% Class B Asset Backed Notes (the "Class B Notes" and, together with the Class A Notes, the "Notes"). The Notes were issued by ACM Auto Trust 2025-1 (the "Issuer"), an indirect subsidiary of the Company. The Notes are collateralized by $337,286,838 of accounts receivable related to installment sales contracts originated by the Company's operating subsidiaries, America's Car Mart, Inc. and Texas Car-Mart, Inc. 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. Net proceeds from the offering (after deducting the underwriting discount payable to the initial purchasers and other expenses) were approximately $198.5 million and are being used to pay outstanding debt and make the initial deposits into collection and reserve accounts for the benefit of noteholders. S&P Global Rating Agency has rated the Notes as follows: Class A Notes, A (sf) ; and Class B Notes, BBB (sf) . To execute the Securitization Transaction, Colonial Auto Finance, Inc., a wholly-owned subsidiary of the Company (the "Seller"), sold or conveyed certain customer receivable contracts (the "Receivables") (loans made to finance customer purchases of used vehicles from the Company's subsidiaries) to ACM Funding, LLC, an indirect wholly-owned subsidiary of the Company (the "Depositor"), pursuant to a Purchase Agreement, dated as of January 31, 2025, by and between the Seller and the Depositor (the "Purchase Agreement"). The Receivables were then sold by the Depositor to the Issuer pu

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 2.03.

01

Item 8.01. Other Events. On February 3, 2025, the Company issued a press release announcing the Securitization Transaction. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. 4.1 Indenture, dated January 31, 2025, by and between ACM Auto Trust 2025-1 and Deutsche Bank National Trust Company, as Indenture Trustee. 10.1 Purchase Agreement, dated January 31, 2025, by and between Colonial Auto Finance, Inc. and ACM Funding, LLC. 10.2 Sale and Servicing Agreement, dated January 31, 2025, by and among ACM Auto Trust 2025-1, ACM Funding, LLC, America's Car Mart, Inc., and Deutsche Bank National Trust Company, as Indenture Trustee, Calculation Agent, and Paying Agent, and Systems & Services Technologies, Inc. as Backup Servicer. 99.1 Press Release dated February 3, 2025 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. America's Car-Mart, Inc. Date: February 5, 2025 /s/ Vickie D. Judy Vickie D. Judy Chief Financial Officer (Principal Financial Officer)

View Full Filing

View this 8-K filing on SEC EDGAR