Southfield, Michigan, Oct. 31, 2013 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (the "Company", "Credit Acceptance", "we", "our", or "us") announced today the completion of a $197.8 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, we contributed loans having a net book value of approximately $250.1 million to a wholly-owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes:
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The Class C Note does not bear interest and is being retained by us.
The Financing will:
- have an expected annualized cost of approximately 2.1% 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 us to repay outstanding indebtedness.