Credit Acceptance Announces $500.0 Million Senior Notes Offering
December 05 2023 - 8:19AM
Credit Acceptance Corporation (Nasdaq: CACC)
(referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or
“us”) announced today that it plans to offer $500.0 million
aggregate principal amount of senior notes due 2028 (the “notes”).
We intend to use the net proceeds from the offering of the notes
(1) to fund (a) our concurrent cash tender offer for any and
all of our $400.0 million outstanding 5.125% senior notes due
2024 (the “2024 notes”), (b) the redemption, in accordance
with the terms of the indenture governing the 2024 notes, of any of
the 2024 notes that remain outstanding after completion of the
tender offer, and (c) the payment of fees and expenses in
connection with the foregoing and (2) for general corporate
purposes. Pending this application of the net proceeds from the
offering of the notes, the net proceeds may be invested in
short-term investments or applied to repay borrowings under our
revolving credit facility without reducing the lenders’ commitments
thereunder.
The notes will be offered only to persons
reasonably believed to be qualified institutional buyers pursuant
to Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”). 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.
The notes will not be registered under the Securities Act and may
not be offered or sold in the United States or to U.S. persons
absent registration or an applicable exemption from registration
requirements. This press release is not an offer to purchase or a
solicitation of an offer to sell the 2024 notes. This press release
does not constitute a notice of redemption with respect to the 2024
notes or an obligation to issue any such notice of redemption.
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,” or similar expressions, 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 offering of the notes and use of the 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.
Factors that might cause such a difference include, but are not
limited to, the factors set forth in Item 1A of our Annual
Report on Form 10-K for the year ended December 31, 2022, filed
with the Securities and Exchange Commission (the “SEC”) on
February 10, 2023, and Item 1A in Part II of our
Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2023, filed with the SEC on May 1, 2023, and
other risk factors listed from time to time in our reports filed
with the SEC. 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
Chief Treasury Officer
(248) 353-2700 Ext. 4432
IR@creditacceptance.com
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