Business
Credit Acceptance Announces Closing of $400 Million Senior Notes Offering and Completion of Tender Offer for Senior Notes Due 2021
Southfield, Michigan, Dec. 18, 2019 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”,
About this update from Credit Acceptance Corporation
[{"type":"text","content":"Southfield, Michigan, Dec. 18, 2019 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the closing of the Company’s previously announced offering of $400 million of its 5.125% senior notes due 2024 (the “notes”), at an issue price of 100% of the principal amount of the notes, in a private offering exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”).\n The Company also announced today the completion of its previously announced cash tender offer (the “Offer”) for any and all of its 6.125% senior notes due 2021 (the “2021 notes”), which expired at 5:00 p.m., New York City time, on December 13, 2019 (the “Expiration Time”). A total of $148,169,000 aggregate principal amount of 2021 notes was validly tendered and not validly withdrawn at or before the Expiration Time, representing approximately 49.4% of the $300 million aggregate principal amount of 2021 notes then outstanding. The complete terms and conditions of the Offer were set forth in the Offer to Purchase dated December 9, 2019 (the “Offer to Purchase”), the related Letter of Transmittal and the related Notice of Guaranteed Delivery. The Company today accepted for purchase and paid for all the 2021 notes validly tendered in the Offer and not validly withdrawn at or before the Expiration Time. Holders of 2021 notes who validly tendered (and did not validly withdraw) their 2021 notes in the Offer at or before the Expiration Time received in cash $1,002.80 per $1,000 principal amount of 2021 notes accepted for purchase pursuant to the Offer to Purchase, plus accrued and unpaid interest to, but not including, the payment date. The Company further announced today that it will redeem all of the 2021 notes that were not purchased in, and remain outstanding following the completion of, the Offer, in accordance with the terms of the indenture governing the 2021 notes (the “2021 notes indenture”). The Company has provided an irrevocable notice to U.S. Bank National Association, the trustee under the 2021 notes indenture, of its election to redeem on January 17, 2020 (the “Redemption Date”), in accordance with the terms of the 2021 notes indenture, all of the outstanding 2021 notes. Such 2021 notes will be redeemed on the Redemption Date at a r...