America’s Car‑Mart closed a five‑year, $300 million term loan with Silver Point Capital, replacing its existing asset‑backed line of credit and simplifying the balance sheet.
The loan, secured by the company’s assets, includes warrants for up to 10% of fully diluted common stock, expiring in 2031, and provides a more stable debt maturity profile that reduces short‑term borrowing.
The financing supports the company’s strategy to grow its buy‑here/pay‑here used‑car business, a segment that is sensitive to interest‑rate changes and economic conditions.
America’s Car‑Mart has a history of using capital‑market tools to fund operations, including a $300 million term securitization in October 2024, demonstrating a consistent approach to accessing liquidity.
The new loan positions the company to pursue expansion and operational initiatives without refinancing risk in a tightening credit environment.
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