America’s Car-Mart closed the month with an important deal to solidify its long-term finances.

On Thursday, the buy-here, pay-here dealership chain announced the closing of a new five-year, $300 million funded term loan facility provided by funds managed by Silver Point Capital.

In connection with this transaction, Car-Mart said it fully repaid the outstanding balance under its asset-backed line of credit (ABL), simplifying its balance sheet and creating a more flexible and scalable capital structure to support long-term growth opportunities and general corporate purposes.

According to a news release, the new term loan matures on Oct. 30, 2030, and bears interest at SOFR plus 7.50% per annum. The loan is secured and subject to customary financial and operational covenants.

“We are excited to complete this transaction at a time of uncertainty in the market, which we believe demonstrates the fundamental strength of our business and our ability to execute on our long-term capital strategy,” Car-Mart chief executive officer Douglas Campbell said in the news release.

“By replacing our ABL facility with a new term loan, we have strengthened our financial profile and added new capital that will provide flexibility and agility for our originations and operations,” Campbell continued. “This action aligns with our multi-year efforts to improve Car-Mart’s platform by reinforcing our core strengths, adapting to evolving market dynamics, and enhancing our balance sheet.”

In connection with the loan, Car-Mart said it also issued Silver Point Capital warrants to purchase up to 10% of the company’s fully diluted outstanding shares of common stock at current market price. The warrant expires on Oct. 30, 2031, and includes customary registration rights for the underlying shares.

“We are pleased to partner with America’s Car-Mart to deliver a customized financing solution that strengthens the company’s capital structure and supports its long-term objectives,” said Taylor Montague, managing director at Silver Point Capital.

“We truly appreciate the extensive engagement by the management team over the last several months that enabled us to complete the thorough due diligence that underpins our conviction in the durability of the enterprise and the company’s market position,” Montague added.

Jefferies Finance served as financial advisor and Mayer Brown served as legal counsel to Car-Mart on this transaction.

“With a more flexible, longer-term component of capital in place, we are well positioned to further optimize our capital structure. This includes broadening our funding sources and continuing to enhance our ABS program, where we have seen continued improvements in our weighted average spread across recent transactions,” Car-Mart chief financial officer Jonathan Collins said.

Car-Mart makes $10K donation to the American Cancer Society

October also included another development connected with Car-Mart finances.

For the ninth consecutive year, America’s Car-Mart donated $10,000 to the American Cancer Society (ACS) to help the organization provide much-needed resources for cancer support, prevention, and research.

This year, Car-Mart planned to donate $2,500 each to four ACS chapters in its 12-state region, including Northwest Arkansas; Evansville, Ind.; Tulsa, Okla.; and Chattanooga, Tenn.

Since 2016, America’s Car-Mart has donated $90,000 to the American Cancer Society.

The month also included its annual “Drive Away Cancer” campaign. Customers could take advantage of a special offer of a $499 down payment on select vehicles for qualified buyers.

“At America’s Car-Mart, we believe in caring for the communities we serve,” Car-Mart chief operating officer Jamie Fischer said in another news release. Through our Drive Away Cancer campaign, we’re honored to support the American Cancer Society’s vital work while also helping families access reliable, affordable transportation.

“It’s about more than cars. It’s about standing together, offering hope, and making life a little better for those who need it most,” Fischer went on to say.