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 millionasset-backed non-recourse secured financing (the"Financing"). Pursuant to this transaction, we contributedloans having a net book value of approximately $250.1 million to awholly-owned special purpose entity which will transfer the loansto a trust, which will issue three classes of notes:
- 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 uponthe cash flows on the contributed loans; and
- be used by us to repay outstanding indebtedness.
The notes have not been and will not be registered under theSecurities Act of 1933 and may not be offered or sold in the UnitedStates absent registration or an applicable exemption fromregistration requirements. This news release does not andwill not constitute an offer to sell or the solicitation of anoffer to buy the notes. This news release is being issuedpursuant to and in accordance with Rule 135c under the SecuritiesAct of 1933.Description of Credit AcceptanceCorporation Since 1972, Credit Acceptance has offeredautomobile dealers financing programs that enable them to sellvehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network ofautomobile dealers who benefit from sales of vehicles to consumerswho otherwise could not obtain financing; from repeat and referralsales generated by these same customers; and from sales tocustomers responding to advertisements for our product, but whoactually end up qualifying for traditional financing. Without our financing programs, consumers areoften unable to purchase a vehicle or they purchase an unreliableone. Further, as we report to the three national creditreporting agencies, an important ancillary benefit of our programsis that we provide a significant number of our consumers with anopportunity to improve their lives by improving their credit scoreand move on to more traditional sources of financing. CreditAcceptance is publicly traded on the NASDAQ under the symbolCACC. For more information, visit creditacceptance.com.
CONTACT: Investor Relations: Douglas W. Busk Senior Vice President and Treasurer (248) 353-2700 Ext. 4432 IR@creditacceptance.com