This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Credit Acceptance Announces Tender Offer

SOUTHFIELD, Mich., Feb. 9, 2011 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq:CACC) (referred to as the "Company", "we", "our", or "us") announced today that we have commenced a tender offer to purchase up to 1,904,761 shares of our outstanding common stock at a price of $65.625 per share.

We anticipate that we will obtain all of the funds necessary to purchase shares tendered in the tender offer, and to pay related fees and expenses, through a combination of the proceeds of a new debt financing (the "Debt Financing") and by borrowing under our $170.0 million revolving secured line of credit facility. The tender offer is subject to the consummation by us of the Debt Financing on terms satisfactory to us.

The primary purpose of this proposed transaction is to distribute excess capital to shareholders. We believe distributing capital to shareholders is appropriate at this time for the following reasons:
  • Since the beginning of 2009, we have generated approximately $315.0 million in profits.  
  • In 2010, the Company completed several longer-term debt financings which have significantly reduced the probability that the Company would need to curtail its loan originations if debt markets become inaccessible.   
  • As of December 31, 2010, we had approximately $340.0 million in unused and available capacity on our revolving lines of credit. Upon completion of the tender offer and the related Debt Financing, we believe we will have sufficient capital to fund new loan originations.

Since 1999, we have distributed $599.2 million to shareholders through share repurchases. While we could distribute excess capital to shareholders through dividends, share repurchases provide shareholders with discretion to increase their ownership, receive cash, or do both based on their individual circumstances and view of the value of a Credit Acceptance share. A dividend does not provide this flexibility.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.31 +1.44 0.07%
NASDAQ 5,128.1340 +11.9910 0.23%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs