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Vroom, Inc. 8-K Analysis & Summary – 3/14/2025

⚠️This is not investment advice.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️

Vroom, Inc.
,

Filing date:

03/14/2025

TLDR:

Vroom, Inc.’s subsidiary, United Auto Credit Corporation, entered into an ABS Transaction, creating long-term obligations through the issuance of $324,003,000 in asset-backed notes.

ELI5:

Vroom’s finance arm, UACC, bundled a bunch of car loans into a package and sold it to investors as bonds. This gives UACC cash now, and investors get paid back over time as people pay off their car loans.

Accession #:

0000950170-25-039035

Published on

Analyst Summary

  • United Auto Credit Corporation (UACC), a subsidiary of Vroom, Inc., entered into an ABS Transaction involving the securitization of subprime motor vehicle retail installment sales contracts.
  • UACC sold approximately $382.1 million of receivables to United Auto Credit Financing LLC, which then sold them to United Auto Credit Securitization Trust 2025-1.
  • The Trust issued $324 million of asset-backed notes across five classes (A, B, C, D, and E) with interest rates ranging from 4.80% to 7.71%.
  • The notes are secured by the receivables, and Computershare Trust Company, N.A. acts as the indenture trustee.
  • UACC will service the receivables for a monthly fee of one-twelfth times 3.25% of the aggregate principal balance of the receivables.
  • Approximately 12% of the receivables were purchased by UACC from Vroom Automotive, LLC, an affiliated dealer.
  • The Depositor initially retained at least 5% of each class of Notes as of the Closing Date, to comply with risk retention regulations.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️