Credit Acceptance Announces Completion of $600.0 Million Asset-Backed Financing
27 September 2024 - 6:02AM
Credit Acceptance Corporation (Nasdaq: CACC) (the
“Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced
today the completion of a $600.0 million asset-backed non-recourse
secured financing (the “Financing”). Pursuant to this transaction,
we conveyed loans having a value of approximately $750.2 million to
a wholly owned special purpose entity which will transfer the loans
to a trust, which will issue three classes of notes:
Note Class |
|
Amount |
|
Average Life |
|
Price |
|
|
Interest Rate |
|
|
A |
|
$ |
316,464,000 |
|
|
2.45 years |
|
|
99.98629 |
% |
|
|
|
4.68 |
% |
|
|
B |
|
$ |
121,668,000 |
|
|
3.08 years |
|
|
99.97303 |
% |
|
|
|
4.85 |
% |
|
|
C |
|
$ |
161,868,000 |
|
|
3.53 years |
|
|
99.98737 |
% |
|
|
|
5.39 |
% |
|
The Financing will:
- have an expected average annualized
cost of approximately 5.2% including the initial purchasers’ fees
and other costs;
- revolve for 24 months after which
it will amortize based upon the cash flows on the conveyed loans;
and
- be used by us to repay outstanding
indebtedness and for general corporate purposes.
We will receive 4.0% of the cash flows related
to the underlying consumer loans to cover servicing expenses. The
remaining 96.0%, less amounts due to dealers for payments of dealer
holdback, will be used to pay principal and interest on the notes
as well as the ongoing costs of the Financing. The Financing is
structured so as not to affect our contractual relationships with
dealers and to preserve the dealers’ rights to future payments of
dealer holdback.
The notes have not been and will not be
registered under the Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable
exemption from registration requirements. This news release does
not and will not constitute an offer to sell or the solicitation of
an offer to buy the notes. This news release is being issued
pursuant to and in accordance with Rule 135c under the Securities
Act of 1933.
Description of Credit Acceptance
Corporation
We make vehicle ownership possible by providing
innovative financing solutions that enable automobile dealers to
sell vehicles to consumers regardless of their credit history. Our
financing programs are offered through a nationwide network of
automobile dealers who benefit from sales of vehicles to consumers
who otherwise could not obtain financing; from repeat and referral
sales generated by these same customers; and from sales to
customers responding to advertisements for our financing programs,
but who actually end up qualifying for traditional financing.
Without our financing programs, consumers are
often unable to purchase vehicles or they purchase unreliable ones.
Further, as we report to the three national credit reporting
agencies, an important ancillary benefit of our programs is that we
provide consumers with an opportunity to improve their lives by
improving their credit score and move on to more traditional
sources of financing. Credit Acceptance is publicly traded on the
Nasdaq stock market under the symbol CACC. For more
information, visit creditacceptance.com.
Investor Relations: Douglas W. Busk
Chief Treasury Officer
(248) 353-2700 Ext. 4432
IR@creditacceptance.com
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