v3.25.2
Debt Facilities
 3 Months Ended
Jul. 31, 2025
Debt Instruments [Abstract]  
Debt Facilities
F – Debt Facilities
A summary of debt facilities is as follows:
(In thousands)July 31, 2025April 30, 2025
Revolving line of credit$168,626 $208,322 
Debt issuance costs(4,232)(3,553)
   
Revolving line of credit, net$164,394 $204,769 
   
Non-recourse notes payable - 2023-1 Issuance$– $46,289 
Non-recourse notes payable - 2023-2 Issuance73,142 92,949 
Non-recourse notes payable - 2024-1 Issuance51,696 73,158 
Non-recourse notes payable - 2024-2 Issuance155,426 194,139 
Non-recourse notes payable - 2025-1 Issuance139,399 168,318 
Non-recourse notes payable - 2025-2 Issuance193,690 - 
Debt issuance costs - non-recourse notes payable(2,603)(2,843)
Non-recourse notes payable, net$610,750 $572,010 
   
Total debt$775,144 $776,779 
Revolving Line of Credit
At July 31, 2025, the Company and its subsidiaries have $350.0 million of permitted borrowings under a revolving line of credit. The revolving credit facilities are collateralized primarily by finance receivables and inventory, are cross collateralized and contain a guarantee by the Company. Interest is payable monthly under the revolving credit facilities with a scheduled maturity date of March 31, 2027. The current applicable interest rate under the credit facilities is SOFR plus 3.5% or for non-SOFR amounts the base rate of 7.5% plus 1.0% at July 31, 2025 and 8.50% plus 1.0% at July 31, 2024. The credit facilities contain various reporting and performance covenants including (i) maintenance of certain financial ratios and tests, (ii) limitations on borrowings from other sources, (iii) restrictions on certain operating activities and (iv) restrictions on the payment of dividends or distributions (see Note B).
The Company was in compliance with the covenants at July 31, 2025. The amount available to be drawn under the credit facilities is a function of eligible finance receivables and inventory; based upon eligible finance receivables and inventory at July 31, 2025, the Company had additional availability of approximately $20.8 million under the revolving credit facilities.
Non-Recourse and Recourse Notes Payable
During the quarter, on May 29, 2025, the Company completed a securitization transaction, which involved the issuance and sale in a private offering of$165.2 million aggregate principal amount of 5.55% Class A Asset Backed Notes (the “Class A Notes”) and $50.8 million aggregate principal amount of 7.25% Class B Asset Back Notes (the “Class B Notes”), with an overall weighted average life adjusted coupon of 6.27%. The Notes were issued by ACM Auto Trust 2025-2, an indirect subsidiary of the Company. The Notes are collateralized by $363.0 million of accounts receivables related to installment sale contracts originated by the Company’s operating subsidiaries, America’s Car Mart, Inc and Texas Car-Mart, Inc. The Class A Notes mature on June 20, 2028, and the Class B Notes mature on February 20, 2032.
As of July 31, 2025, the Company has six outstanding series of asset-backed non-recourse notes (known as the “2023-1 Issuance”, “2023-2 Issuance”, “2024-1 Issuance”, “2024-2 Issuance”, “2025-1 Issuance”, and “2025-2 Issuance”). All six issuances are collateralized by installment sale contracts directly originated by the Company. Credit enhancement for the non-recourse notes payable consists of overcollateralization, a reserve account funded with an initial amount of not less than 2.0% of the pool balance, excess interest on the auto finance receivables, and in some cases, the subordination of certain payments to noteholders of less senior classes of notes. The timing of principal payments on the non-recourse notes
payable is based on the timing of principal collections and defaults on the related auto finance receivables. In July 2025, the Company fully paid off the 2023-1 Issuance. The notes payable related to the remaining term securitization transactions accrue interest predominately at fixed rates and have scheduled maturities through June 20, 2028, June 20, 2030, and January 21, 2031, August 20, 2031, November 20, 2031 and February 20, 2032, respectively, but may be repaid earlier, depending upon collections from the underlying auto finance receivables. The original principal balance and weighted average fixed coupon rate for the outstanding securitizations are as follows:
Original Principal Balance
(in thousands)
Weighted Average Fixed Coupon Rate
2023-2$360,300 8.80%
2024-1250,000 9.50%
2024-2300,000 7.44 %
2025-1200,000 6.49%
2025-2216,000 6.27 %
On July 12, 2024, the Company’s principal operating subsidiary, America’s Car Mart, Inc., and a newly formed affiliate entered into a loan and security agreement under which the Company’s affiliate borrowed $150 million in funding through an amortizing warehouse loan facility collateralized by installment sale contracts directly originated by the Company’s operating subsidiaries. The Company used the funding from the warehouse loan facility to pay down outstanding amounts borrowed under the Company’s revolving line of credit to fund its finance receivables. The loan and security agreement provided for additional borrowing availability, subject to the terms and conditions of the agreement, and recourse against the Company with respect to up to 10% of the aggregate amount borrowed under the warehouse facility payable. Interest on any outstanding balances accrues at a rate of SOFR plus 350 basis points, with a scheduled maturity date of July 12, 2026. In October 2024, the Company used the proceeds from its 2024-2 Issuance to pay down the outstanding balance under the warehouse loan facility. No debt was outstanding under the warehouse loan facility as of July 31, 2025