XML 29 R14.htm IDEA: XBRL DOCUMENT v3.25.2
Debt
 12 Months Ended
Apr. 30, 2025
Debt Instruments [Abstract]  
Debt
F – Debt
A summary of debt is as follows:
(In thousands)April 30, 2025April 30, 2024
   
Revolving line of credit$208,322 $201,743 
Debt issuance costs(3,553)(924)
   
Revolving line of credit, net$204,769 $200,819 
   
Non-recourse notes payable - 2023-1 Issuance$46,289 $150,190 
Non-recourse notes payable - 2023-2 Issuance92,949 203,189 
Non-recourse notes payable - 2024-1 Issuance73,158 202,916 
Non-recourse notes payable - 2024-2 Issuance194,139 - 
Non-recourse notes payable - 2025-1 Issuance168,318 - 
Debt issuance costs(2,843)(2,666)
Non-recourse notes payable, net$572,010 $553,629 
   
Total debt$776,779 $754,448 
Revolving Line of Credit
At April 30, 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 credit facilities provide for four pricing tiers for determining the applicable interest rate, based on the Company’s consolidated leverage ratio for the preceding fiscal quarter. The current applicable interest rate under the credit facilities is SOFR plus 3.50%, or for non-SOFR amounts, the base rate of 7.50% plus 1% at April 30, 2025 and 8.25% plus 1% at April 30, 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 April 30, 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 April 30, 2025, the Company had additional availability of approximately $27.3 million under the revolving credit facilities.
Non-Recourse and Recourse Notes Payable
The Company has issued six separate series of asset-backed non-recourse notes (known as the “2022 Issuance”, “2023-1 Issuance”, “2023-2 Issuance”, “2024-1 Issuance”, “2024-2 Issuance”, and “2025-1 Issuance”) as of April 30, 2025. 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 December 2023, the Company fully paid off the 2022 Issuance. The five notes payable related to the remaining term securitization transactions accrue interest predominately at fixed rates and have scheduled maturities through January 22, 2030, June 20, 2030, and January 21, 2031, August 20, 2031, and November 20, 2031, 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 five securitizations are as follows:
 
Original Principal Balance (in thousands)
Weighted Average Fixed
Coupon Rate
2023-1$400,200 8.68%
2023-2360,300 8.80%
2024-1250,000 9.50%
2024-2300,000 7.44%
2025-1200,000 6.49%

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 April 30, 2025.