Credit Acceptance Corporation Announces Expiration and Results of Tender Offer For Any and All of Its $400,000,000 Aggregate Principal Amount of 5.125% Senior Notes Due 2024
December 15 2023 - 8:30AM
Credit Acceptance Corporation (Nasdaq: CACC)
(referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or
“us”) announced today that its previously announced cash tender
offer (the “Offer”) for any and all of the $400,000,000 aggregate
principal amount of its 5.125% Senior Notes due 2024 with CUSIP
number 225310AN1 (the “Notes”) expired at 5:00 p.m., New York City
time, on December 14, 2023 (the “Expiration Time”). According
to information provided by Global Bondholder Services Corporation,
the tender agent and the information agent for the Offer, Notes in
an aggregate principal amount of $322,270,000 were validly tendered
and not validly withdrawn at or before the Expiration Time. This
amount excludes Notes in an aggregate principal amount of
$2,830,000 tendered pursuant to the guaranteed delivery procedures
described in the Offer to Purchase, including the related Notice of
Guaranteed Delivery, dated December 5, 2023 (the “Offer to
Purchase”), and in the related Letter of Transmittal, which remain
subject to the holders’ performance of the delivery requirements
under such procedures. The closing of the Offer is subject to a
number of conditions that are set forth in the Offer to Purchase,
including the successful completion by us of a new senior debt
offering. If the conditions are satisfied, we expect to pay for the
Notes that were validly tendered and not validly withdrawn at or
before the Expiration Time on December 19, 2023 (the
“Settlement Date”).
Holders who validly tendered (and did not
validly withdraw) their Notes at or before the Expiration Time will
receive $1,000 for each $1,000 principal amount of Notes accepted
by us for purchase in the Offer. Accrued and unpaid interest up to,
but not including, the Settlement Date will be paid in cash on all
validly tendered Notes accepted by us for purchase in the
Offer.
We intend to fund the purchase of the Notes that
were validly tendered and not validly withdrawn at or before the
Expiration Time with a portion of the proceeds from our previously
announced senior debt offering, the closing of which is expected to
occur on or about December 19, 2023, subject to customary
closing conditions.
Wells Fargo Securities, LLC has acted as the
dealer manager in connection with the Offer. Copies of the Offer to
Purchase, the related Letter of Transmittal and the Notice of
Guaranteed Delivery may be obtained from Global Bondholder Services
Corporation, which is acting as the tender agent for the Offer and
as the information agent for the Offer, online at
https://www.gbsc-usa.com/creditacceptance/ or by telephone at (212)
430-3774 (banks and brokers) or (855) 654-2015 (all others).
Questions regarding the Offer may be directed to the information
agent, Global Bondholder Services Corporation, at (212) 430-3774
(banks and brokers) or (855) 654-2015 (all others). Questions
regarding the Offer may also be directed to the dealer manager,
Wells Fargo Securities, LLC, at (866) 309-6316 (toll-free) and
(704) 410-4756 (collect).
This announcement is not an offer to purchase or
a solicitation of an offer to sell any securities. The Offer was
made solely by means of the Offer to Purchase and the related
Letter of Transmittal.
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 Offer and the new senior debt offering,
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
Credit Acceptance (NASDAQ:CACC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Credit Acceptance (NASDAQ:CACC)
Historical Stock Chart
From Jul 2023 to Jul 2024