AutoNation Finance Achieves Milestone with $700 Million Securitization Deal

AutoNation Finance Marks a New Era with $700 Million Securitization Deal

In a significant move to strengthen its financial framework, AutoNation, Inc. (NYSE: AN) has successfully completed its inaugural asset-backed securitization (ABS), raising an impressive $700 million for its automobile loan portfolio. This strategic financing decision was finalized on May 21, 2025, marking a pivotal moment for the company as it looks to advance its business operations and reinforce its position in the automotive retail market.

Chief Executive Officer Mike Manley expressed his satisfaction with the transaction, highlighting the strong demand that led to a favorable outcome. The securitization not only generated substantial funding at a competitive weighted-average fixed interest rate of 4.90%, but it also enabled AutoNation to replace existing debt at a lower cost. With an initial 98% advance rate, the company was able to secure additional capital, increasing the size of the offering by $200 million, thus enhancing its ability to pursue various capital allocation priorities.

Manley emphasized the importance of this achievement in providing a solid foundation for sustainable growth. “I am very pleased with our first ABS transaction,” he stated. He congratulated the AutoNation Finance team for their excellent performance and strategic execution in making this milestone possible.

Background on AutoNation

AutoNation stands as one of the largest automotive retailers in the United States, providing a broad array of services tailored to the demands of its customers. The organization operates a vast network of dealerships nationwide, focusing on both new and used vehicles. Beyond mere sales, AutoNation also offers financing options, essential vehicle parts, and dedicated maintenance and repair services. This multi-faceted approach is designed to meet the comprehensive needs of its clientele while ensuring satisfaction and loyalty.

In addition to its retail operations, AutoNation has also showcased its commitment to social responsibility through initiatives aimed at raising funds for cancer-related causes. Under the banner of DRV PNK, the company has proudly contributed over $40 million to various cancer charities, demonstrating its pledge to positively impact the lives of its associates, customers, and the broader community.

As AutoNation continues to evolve and adapt to the changing automotive landscape, financial strategies like this securitization play a crucial role in empowering the company to innovate and invest back into its operations. The successful completion of this first ABS transaction highlights AutoNation's robust financial strategy while enabling them to explore further opportunities in the dynamic automotive financing realm.

For more information about AutoNation and its services, visit www.autonation.com, where further details about the company's operations and financial results are disclosed ahead of quarterly and annual earnings call.