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 Pricing Of $100 Million Senior Secured Notes Offering

SOUTHFIELD, Mich., Feb. 28, 2011 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq:CACC) (referred to as the "Company," "we," "our," or "us") announced today that it priced the $100 million of its 9.125% first priority senior secured notes due 2017 (the "notes") in its previously-announced offering. The issue price is 106.0% of the principal amount of the notes. The closing of the sale of the notes is expected to occur on or about March 3, 2011, subject to customary closing conditions.

The notes will constitute additional securities under an existing indenture (the "indenture") pursuant to which the Company issued $250 million of its 9.125% first priority senior secured notes due 2017 (the "existing notes") on February 1, 2010. The notes will have the same terms as the existing notes, other than issue price and issue date, and, together with the existing notes and any further 9.125% senior secured notes due 2017 that may be issued under the indenture, will be treated as a single class under the indenture. The notes will be guaranteed by certain of the Company's subsidiaries on a first priority senior secured basis.

We intend to use the net proceeds from the offering to fund, in part, the purchase of shares of our common stock in the tender offer announced February 9, 2011 and the payment of fees and expenses relating to the tender offer. The closing of the offering is not conditioned on consummation of the tender offer. In the event that the net proceeds from the offering of the notes exceed the amount required to purchase shares of our common stock in the tender offer and to pay related fees and expenses, which could occur if the tender offer is not consummated for any reason or if the number of shares properly tendered and not properly withdrawn in the tender offer is sufficiently small, we intend to use that excess for general corporate purposes, which may include repayment of debt, expansion of our operations, share repurchases or other uses. In accordance with the terms of our revolving credit facility, we will initially apply the net proceeds from the offering, pending their application as described above, to repay borrowings (without reducing the lenders' commitments thereunder) under our revolving credit facility with a commercial bank syndicate, to the extent of such borrowings.

1 of 2

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 16,868.06 +77.87 0.46%
S&P 500 1,990.38 +10.46 0.53%
NASDAQ 4,772.20 +23.8390 0.50%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs