Credit Acceptance Announces Redemption of Outstanding 7.375% Senior Notes Due 2023
February 14 2020 - 4:02PM
Credit Acceptance Corporation (Nasdaq:
CACC) (referred to as the “Company”, “Credit Acceptance”,
“we”, “our”, or “us”) announced today the redemption of all of the
Company’s 7.375% senior notes due 2023 (the “2023 notes”) in
accordance with the terms of the indenture governing the 2023 notes
(the “2023 notes indenture”). The Company has provided an
irrevocable notice to U.S. Bank National Association, the trustee
under the 2023 notes indenture, of the Company’s election to redeem
all of the outstanding 2023 notes on March 15, 2020, in
accordance with the terms of the 2023 notes indenture, at a
redemption price equal to 101.844% of the principal amount thereof.
In accordance with the 2023 notes indenture, accrued and unpaid
interest on the 2023 notes from September 15, 2019 (the most
recent date to which interest on the 2023 notes has been paid) will
be payable on March 15, 2020 to the holders of record of the
2023 notes as of the March 1, 2020 interest record date, and
no additional interest will be payable on the 2023 notes. Interest
on the 2023 notes will cease to accrue on and after the
March 15, 2020 redemption date. In accordance with the 2023
notes indenture, because March 15, 2020 is a Sunday, payment
of the redemption price and of interest payable on that date with
respect to the 2023 notes will be made on Monday, March 16,
2020.
Notice of the redemption of the 2023 notes will
be sent to holders of the 2023 notes by U.S. Bank National
Association as specified under the 2023 notes indenture. This press
release does not constitute a notice of redemption with respect to
the 2023 notes.
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 the redemption of the 2023 notes, 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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