Asset Acceptance Capital Corp. Announces Final Results of its Modified 'Dutch Auction' Tender Offer
June 18 2007 - 9:10AM
PR Newswire (US)
WARREN, Mich., June 18 /PRNewswire-FirstCall/ -- Asset Acceptance
Capital Corp. (NASDAQ:AACC), a leading purchaser and collector of
charged-off consumer debt, today announced the final results of its
tender offer which expired at 5:00 p.m. New York City time, on June
12, 2007. AACC commenced the tender offer on May 9, 2007 to
purchase for cash up to 1,858,000 shares of common stock in a price
range of $18.25 to $20.00 per share, net to the seller in cash,
without interest. J.P. Morgan Securities Inc. acted as dealer
manager for the tender, MacKenzie Partners, Inc. acted as
information agent and LaSalle Bank, N.A. acted as the depositary.
In accordance with the terms of the tender offer, the Company has
accepted for purchase 1,982,250 properly tendered shares at $18.75
per share, net to the seller in cash, without interest, for a total
purchase price of approximately $37.2 million. The final count of
shares purchased is more than the amount communicated in the
Company's preliminary announcement on June 13, 2007, by 12 shares.
The shares to be purchased include the 1,858,000 shares the Company
is obligated to purchase and an additional 124,250 shares that the
Company elected to purchase under the optional purchase provision
of the tender offer, for a total of 1,982,250 shares. A final count
by the depositary indicates that the total number of shares
tendered in the offer at or below $18.75 per share was 2,292,737,
resulting in a proration factor of approximately 86.5%. All shares
purchased in the tender offer will be purchased at the same price,
$18.75 per share. The depositary, LaSalle Bank, N.A., will promptly
commence payment for the shares purchased in the tender offer and
will return all other shares of common stock tendered and not
accepted for purchase due to proration or conditional tender
provisions of the tender offer. Based upon AACC's purchase of
1,982,250 shares in the tender offer, as described in the Company's
Offer to Purchase, AACC would then repurchase another 2,017,750
shares in the aggregate pursuant to the Stock Repurchase Agreement
among the Company, AAC Quad-C Investors LLC, the Company's largest
shareholder, the Chairman, President and Chief Executive Officer,
and the Senior Vice President-Finance and Chief Financial Officer
(the "Sellers"), under which the Company agreed to repurchase a
number of the Sellers' beneficially owned shares required to
maintain each Seller's pro rata beneficial ownership interest in
AACC. AAC Quad-C Investors LLC, Mr. Bradley and Mr. Redman
currently own beneficially approximately 35.6%, 12.2% and 2.6%,
respectively, of the Company's outstanding shares of common stock,
and elected not to tender any shares in the tender offer. The
repurchase under the Stock Repurchase Agreement will be at $18.75
per share, the same price per share as is paid in the tender offer,
and will occur on June 28, 2007, the 11th business day after the
expiration of the tender offer. The shares purchased in the tender
offer and to be repurchased pursuant to the Stock Repurchase
Agreement represent approximately 5.7% and 5.8%, respectively, of
the Company's outstanding shares. As a result of the completion of
the tender offer, immediately following the purchase of the
tendered shares, AACC expects that approximately 32,716,583 shares
will be issued and outstanding, with approximately 30,698,833
shares estimated to be issued and outstanding after completion of
the repurchase of the Sellers' shares pursuant to the Stock
Repurchase Agreement. All inquiries about the tender offer should
be directed to the information agent, MacKenzie Partners, Inc., at
(800) 322-2885 (toll-free). About Asset Acceptance Capital Corp.
For more than 40 years, Asset Acceptance has provided credit
originators, such as credit card issuers, consumer finance
companies, retail merchants, utilities and others an efficient
alternative in recovering defaulted consumer debt. For more
information, please visit http://www.assetacceptance.com/. Asset
Acceptance Capital Corp. Safe Harbor Statement This press release
contains certain statements, including the Company's plans and
expectations regarding its operating strategies, charged-off
receivables and costs, which are forward-looking statements. These
forward- looking statements reflect the Company's views, at the
time such statements were made, with respect to the Company's
future plans, objectives, events, portfolio purchases and pricing,
collections and financial results such as revenues, expenses,
income, earnings per share, capital expenditures, operating
margins, financial position, expected results of operations and
other financial items. Forward-looking statements are not
guarantees of future performance; they are subject to risks and
uncertainties. In addition, words such as "estimates," "expects,"
"intends," "should," "could," "will," variations of such words and
similar expressions are intended to identify forward-looking
statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions ("Risk Factors") that are difficult to predict with
regard to timing, extent, likelihood and degree of occurrence.
There are a number of factors, many of which are beyond the
Company's control, which could cause actual results and outcomes to
differ materially from those described in the forward-looking
statements. Risk Factors include, among others: ability to purchase
charged- off consumer receivables at appropriate prices, ability to
continue to acquire charged-off receivables in sufficient amounts
to operate efficiently and profitably, employee turnover, ability
to compete in the marketplace, acquiring charged-off receivables in
industries that the Company has little or no experience,
integration and operations of newly acquired businesses, ability to
achieve anticipated cost savings from office closings without the
disruption of collections associated with these offices, and
additional factors discussed in the Company's periodic reports
filed with the Securities and Exchange Commission on Form 10-K and
10-Q and exhibits thereto. Other Risk Factors exist, and new Risk
Factors emerge from time to time that may cause actual results to
differ materially from those contained in any forward- looking
statements. Given these risks and uncertainties, investors should
not place undue reliance on forward-looking statements as a
prediction of actual results. Furthermore, the Company expressly
disclaims any obligation to update, amend or clarify
forward-looking statements. In addition to the foregoing, several
Risk Factors are discussed in the Company's most recently filed
Annual Report on Form 10-K and other SEC filings, in each case
under the section titled "Forward Looking Statements" or similar
headings and those discussions regarding risk factors as well as
the discussion of forward looking statements in such sections are
incorporated herein by reference. DATASOURCE: Asset Acceptance
Capital Corp. CONTACT: Mr. Noel Ryan III of Lambert, Edwards &
Associates, Inc., +1-616-233-0500, , for Asset Acceptance Capital
Corp. Web site: http://www.assetacceptance.com/
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