Asset Acceptance Capital Corp. to Pursue New Senior Secured Credit Facilities
April 20 2011 - 8:30AM
Business Wire
Asset Acceptance Capital Corp. (NASDAQ:AACC), a leading
purchaser and collector of charged-off consumer debt, today
announced that it has engaged JP Morgan Securities LLC to act as
sole lead arranger and bookrunner to arrange a syndicate of lenders
to fund new senior secured loans to replace its existing credit
facilities.
The proposed transaction, comprised of a combination of
revolving credit and term loan B facilities, will refinance the
Company’s existing $233.4 million senior secured debt. The
Company’s existing $100.0 million revolving credit facility will
mature in June 2012 and the $133.4 million remaining balance on its
term loan B will mature on June 2013.
The Company expects the new facilities, once completed, to
provide increased capacity and enhanced flexibility to help fund
ongoing growth of the business.
Rion Needs, President and Chief Executive Officer, commented,
“Given recent improvement in the credit markets, we saw an
opportunity to proactively refinance our existing credit facilities
to further increase our financial strength and flexibility. As we
continue to execute our long-term growth strategy, which includes
expanding our purchasing and collection capabilities, the new
loans, along with our improving free cash flow, should provide
additional working capital financing and allow for more
opportunistic purchasing to grow our business.”
About Asset Acceptance Capital Corp.
For more than 45 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 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 and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include reference to the Company’s
presentations and webcasts. These forward-looking statements
reflect the Company's views, expectations and beliefs at the time
such statements were made with respect to such matters, as well as
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 and involve certain risks,
uncertainties and assumptions (“Risk Factors”) that make the
timing, extent, likelihood and degree of occurrence of these
matters difficult to predict. Words such as “anticipates,”
“believes,” “estimates,” “expects,” “intends,” “should,” “could,”
“will,” variations of such words and similar expressions are
intended to identify forward-looking statements. 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 and acquiring charged-off receivables in
industries that the Company has little or no experience. These Risk
Factors also include, among others, the Risk Factors discussed
under “Item 1A Risk Factors” in the Company’s most recently filed
Annual Report on Form 10-K and in other SEC filings, in each case
under a section titled “Risk Factors” 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. 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.
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