Credit Acceptance Announces Completion Of $100.5 Million Asset-Backed Financing
SOUTHFIELD, Mich., Nov. 4, 2010 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq:CACC) (the "Company") announced today the completion of a $100.5 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, the Company contributed loans having a net book value of approximately $126.8 million to a wholly-owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes:
|Note Class||Amount||Average Life||Price||Interest Rate|
The Class A Notes are rated "AAA (sf)" by Standard & Poor's Rating Services and DBRS, Inc. The Class B Notes are rated "AA (sf)" by Standard & Poor's Rating Services. The Class C Note does not bear interest, is not rated and is being retained by the Company.
The Financing will:
- Have an expected annualized cost of approximately 3.0% including the initial purchaser's fees and other costs;
- Revolve for 24 months after which it will amortize based upon the cash flows on the contributed loans; and
- Be used by the Company to repay outstanding indebtedness.
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