Attached files
file | filename |
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8-K - FORM 8-K - CREDIT ACCEPTANCE CORP | k50156e8vk.htm |
EX-4.F.144 - EX-4.F.144 - CREDIT ACCEPTANCE CORP | k50156exv4wfw144.htm |
EX-4.F.145 - EX-4.F.145 - CREDIT ACCEPTANCE CORP | k50156exv4wfw145.htm |
Exhibit 99.1
Silver Triangle Building
25505 West Twelve Mile Road, Suite 3000
Southfield, MI 48034-8339
(248) 353-2700
creditacceptance.com
25505 West Twelve Mile Road, Suite 3000
Southfield, MI 48034-8339
(248) 353-2700
creditacceptance.com
NEWS RELEASE
FOR IMMEDIATE RELEASE
Date: March 3, 2011
Investor Relations: Douglas W. Busk
Senior Vice President and Treasurer
(248) 353-2700 Ext. 4432
IR@creditacceptance.com
Senior Vice President and Treasurer
(248) 353-2700 Ext. 4432
IR@creditacceptance.com
NASDAQ: CACC
CREDIT ACCEPTANCE ANNOUNCES CONSUMMATION OF
$100 MILLION SENIOR SECURED NOTES OFFERING
$100 MILLION SENIOR SECURED NOTES OFFERING
Southfield, Michigan March 3, 2011 Credit Acceptance Corporation (referred to as the
Company, we, our, or us) announced today that it has consummated the offering of $100
million of its 9.125% first priority senior secured notes due 2017 (the notes) at an issue price
of 106.0% of the principal amount of the notes.
The notes constitute additional securities under an existing indenture (the indenture) pursuant
to which the Company issued $250 million of its 9.125% first priority senior secured notes due 2017
(the prior notes) on February 1, 2010. The notes have the same terms as the prior notes, other
than issue price and issue date, and, together with the prior notes and any further 9.125% senior
secured notes due 2017 that may be issued under the indenture, will be treated as a single class
under the indenture. The notes are guaranteed by certain of the Companys subsidiaries on a first
priority senior secured basis.
We intend to use the net proceeds from the offering to fund, in part, the purchase of shares of our
common stock in the tender offer announced February 9, 2011 and the payment of fees and expenses
relating to the tender offer. In the event that the net proceeds from the offering of the notes
exceed the amount required to purchase shares of our common stock in the tender offer and to pay
related fees and expenses, which could occur if the tender offer is not consummated for any reason
or if the number of shares properly tendered and not properly withdrawn in the tender offer is
sufficiently small, we intend to use that excess for general corporate purposes, which may include
repayment of debt, expansion of our operations, share repurchases or other uses. In accordance with
the terms of our revolving credit facility, we will initially apply the net proceeds from the
offering, pending their application as described above, to repay borrowings (without reducing the
lenders commitments thereunder) under our revolving credit facility with a commercial bank
syndicate, to the extent of such borrowings.
The notes have been offered only in the United States to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and outside the
United States pursuant to Regulation S under the Securities Act. The notes have not been registered
under the Securities Act and may not be offered or sold in the United States absent registration or
an applicable exemption from registration requirements. 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.
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.