Credit Acceptance Announces Pricing of $600.0 Million Senior Notes Offering
December 05 2023 - 6:15PM
Credit Acceptance Corporation (Nasdaq: CACC)
(referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or
“us”) announced today that it priced $600.0 million aggregate
principal amount of its 9.250% senior notes due 2028 (the “notes”)
in its previously announced offering at an issue price of 100% of
the principal amount of the notes. The $600.0 million
aggregate principal amount of the notes represents an increase in
the offering size from the previously announced
$500.0 million. The closing of the sale of the notes is
expected to occur on or about December 19, 2023, subject to
customary closing conditions. 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 are being 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 completion of the offering of the notes and
use 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. 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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