Credit Acceptance Announces Pricing of $400 Million Senior Notes Offering
December 09 2019 - 5:10PM
Credit Acceptance Corporation (Nasdaq: CACC)
(referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or
“us”) announced today that it priced $400 million of its
5.125% senior notes due 2024 (the “notes”) in its previously
announced offering. The issue price is 100% of the principal amount
of the notes. The closing of the sale of the notes is expected to
occur on or about December 18, 2019, subject to customary
closing conditions. We intend to use the net proceeds from the
offering of the notes, together with borrowings under our revolving
credit facility and cash on hand to the extent available, to fund
(i) our concurrent cash tender offer for any and all of our
$300 million outstanding senior notes due 2021 (the “2021 notes”),
(ii) the redemption, in accordance with the terms of the
indenture governing the 2021 notes, of any of the 2021 notes that
remain outstanding after completion of tender offer, (iii) the
redemption in full of all of our $250 million outstanding senior
notes due 2023 (the “2023 notes”), on or around (but not before)
March 15, 2020, in accordance with the terms of the indenture
governing the 2023 notes and (iv) the payment of fees and
expenses in connection with the foregoing. Pending this application
of the net proceeds from the offering, the net proceeds may be
invested in short-term investments or applied to repay borrowings
under our revolving credit facility without reducing the lenders’
commitments thereunder.
The notes will be offered only to persons
reasonably believed to be qualified institutional buyers pursuant
to Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”). This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of, the notes in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
The notes will not be registered under the Securities Act and may
not be offered or sold in the United States or to U.S. persons
absent registration or an applicable exemption from registration
requirements. This press release is not an offer to purchase or a
solicitation of an offer to sell the 2021 notes or the 2023 notes.
This press release does not constitute a notice of redemption with
respect to the 2021 notes or the 2023 notes or an obligation to
issue any such notice of redemption.
Cautionary Statement Regarding
Forward-Looking Information
Statements in this release that are not
historical facts, such as those using terms like “may,” “will,”
“should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,”
“estimate,” “intend,” “plan,” “target” and those regarding our
future results, plans and objectives, are “forward-looking
statements” within the meaning of the federal securities laws.
These forward-looking statements, which include statements
concerning completion of the offering of the notes and application
of net proceeds therefrom, represent our outlook only as of the
date of this release. Actual results could differ materially from
these forward-looking statements since the statements are based on
our current expectations, which are subject to risks and
uncertainties. We do not undertake, and expressly disclaim any
obligation, to update or alter our statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Investor Relations: Douglas W. Busk
Senior Vice President and Treasurer
(248) 353-2700 Ext. 4432
IR@creditacceptance.com
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