CRMT enters $5.0M Second Amendment to Silver Point credit facility, extends Specified Defaults waiver to Nov 1, 2026, and redeems ACM Auto Trust 2024-2 notes
On October 15, 2026, America's Car-Mart, Inc. entered into the Second Amendment to its Credit and Guaranty Agreement with Silver Point Finance, LLC, as Administrative Agent and Collateral Agent, providing incremental term loans of $5.0 million maturing October 30, 2030 on the same interest-rate and other terms as the existing term loans; the proceeds are for general corporate purposes. The Company agreed to pay $200,000 in fees to the Agent and Lenders, added to outstanding principal. The Agent and Lenders also...
Key takeaways
Second Amendment to Credit Agreement: $5.0 million incremental term loans from existing Silver Point-led lender group, maturing October 30, 2030, on same interest rate and other terms as the existing term loans.
Fees: $200,000 payable to Agent and Lenders in connection with the Second Amendment, added to the outstanding principal balance under the Credit Agreement.
Use of proceeds: general corporate purposes (including fees and expenses), to be applied in accordance with the most recently delivered Approved Budget under the First Amendment.
Existing defaults remain outstanding: the $5.0 million incremental loan is incremental to the previously disclosed 'Specified Defaults' and the prior $305,608,825.77 aggregate outstanding principal as of October 14, 2026.
Waiver extension: Agent and Lenders extended the First Amendment's Scheduled Termination Date and temporary relief for minimum liquidity and minimum Collateral Coverage Ratio from October 22, 2026 to November 1, 2026.
Securitization clean-up: ACM Auto Trust 2024-2 redeemed all outstanding Asset Backed Notes on October 20, 2026 after the Company exercised its option to purchase remaining receivables, releasing approximately $92 million of receivables that are no longer pledged.
Tranche ranking: Second Amendment Term Loans rank senior in right of payment to Obligations relating to the other Loans and are guaranteed and secured on a pari passu basis with the other Loans.
Key metrics
Disclosure changes
- Specified Defaults and First Amendment waiver status
The Agent and Lenders extended the First Amendment's Scheduled Termination Date and temporary relief for minimum liquidity thresholds and minimum Collateral Coverage Ratio from October 22, 2026 to November 1, 2026, indicating Specified Defaults under the Credit Agreement remain in effect subject to limited waiver.
Indicates continuing credit stress; the company is operating under a limited waiver and rolling short-term extensions of liquidity and collateral coverage covenant relief while still in default. - Liquidity and liquidity sources
The Company received $5.0 million in incremental term loans under the Second Amendment for general corporate purposes per the Approved Budget, in addition to the October 20, 2026 redemption of the ACM Auto Trust 2024-2 notes which released approximately $92 million of receivables from the Issuer.
Modifies the company's near-term liquidity profile and shifts approximately $92 million of receivables from a securitization vehicle back to the consolidated balance sheet, with implications for borrowing base and non-recourse debt capacity. - Borrowing Base mandatory prepayment mechanics
The Second Amendment provides that the Borrowers are not required to make any mandatory prepayment for a Borrowing Base Deficiency under Section 2.10(e) unless the Requisite Lenders request it.
Removes automatic triggering of mandatory prepayments from borrowing-base shortfalls, giving lenders discretion over when to require cash sweeps tied to collateral coverage shortfalls. - Existing Securitizations outstanding
ACM Auto Trust 2024-2 has been redeemed in full, reducing the number of outstanding Existing Securitizations from six to five. The Existing Warehouse Facility and the remaining five securitizations (ACM Auto Trust 2023-2, 2024-1, 2025-1, 2025-2, and 2025-3) remain outstanding.
Simplifies the securitization stack and removes one indenture trustee relationship, while freeing up collateral previously pledged under the 2024-2 facility.
Primary source
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