top of page

Credit Acceptance Corporation - Tender Offer (and New Issue) - Launch

CREDIT ACCEPTANCE CORPORATION ANNOUNCES TENDER OFFER FOR ANY AND ALL OF ITS $400,000,000 AGGREGATE PRINCIPAL AMOUNT OF 5.125% SENIOR NOTES DUE 2024 - CUSIP No. 225310AN1 - (AND PRICING OF $600.0 MILLION SENIOR NOTES OFFERING)

05 DECEMBER 2023


Full announcement including disclaimers and offer restrictions available via SEC and Credit Acceptance Corporation


Southfield, Michigan, Dec. 05, 2023 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that it priced $600.0 million aggregate principal amount of its 9.250% senior notes due 2028 (the “notes”) in its previously announced offering at an issue price of 100% of the principal amount of the notes.

The $600.0 million aggregate principal amount of the notes represents an increase in the offering size from the previously announced $500.0 million. The closing of the sale of the notes is expected to occur on or about December 19, 2023, subject to customary closing conditions. We intend to use the net proceeds from the offering of the notes (1) to fund (a) our concurrent cash tender offer for any and all of our $400.0 million outstanding 5.125% senior notes due 2024 (the “2024 notes”), (b) the redemption, in accordance with the terms of the indenture governing the 2024 notes, of any of the 2024 notes that remain outstanding after completion of the tender offer, and (c) the payment of fees and expenses in connection with the foregoing and (2) for general corporate purposes. Pending this application of the net proceeds from the offering of the notes, the net proceeds may be invested in short-term investments or applied to repay borrowings under our revolving credit facility without reducing the lenders’ commitments thereunder."


...


(from OTP)


"Credit Acceptance Corporation, a Michigan corporation (“we,” “us,” “our” or the “Company”), hereby offers to purchase for cash (the “Offer”) from each registered holder (each a “Holder” and, collectively, the “Holders”), on the terms and subject to the conditions set forth in this Offer to Purchase (as it may be amended or supplemented from time to time, this “Offer to Purchase”) and in the related Letter of Transmittal (as it may be amended or supplemented from time to time, the “Letter of Transmittal”) and Notice of Guaranteed Delivery (together with this Offer to Purchase and the Letter of Transmittal, the “Offer Documents”), any and all of the outstanding 5.125% Senior Notes due 2024 (CUSIP No. 225310AN1) issued by the Company (the “Notes”).


As of December 5, 2023, there was $400,000,000 aggregate principal amount of the Notes outstanding. The consideration for each $1,000 principal amount of Notes validly tendered and accepted for purchase pursuant to the Offer will be the tender offer consideration as set forth in the table below (the “Tender Offer Consideration”). In addition, Holders whose Notes are purchased in the Offer will receive accrued and unpaid interest in respect of their purchased Notes from the last interest payment date to, but not including, the Payment Date (as defined below) for Notes purchased in the Offer.



...


"Source of Funds


.................................................... We intend to (1) pay the consideration payable to purchase the Notes tendered and accepted for purchase in the Offer, (2) fund the Redemption and (3) fund the payment of fees and expenses in connection with the foregoing with proceeds from the New Notes Offering, together with borrowings under our revolving credit facility and cash on hand to the extent available. The Offer is conditioned upon, among other things, the completion of the New Notes Offering as described under “The Offer—Conditions to the Offer,” and no assurance can be given that the New Notes Offering will be completed."


...


"Purpose and Background of the Offer


The purpose of the Offer is to acquire all outstanding Notes. Any Notes that are tendered and accepted in the Offer will be retired and canceled. We currently intend to exercise our right to optionally redeem any and all Notes not purchased by us in the Offer. The Offer Documents do not constitute a notice of redemption of the Notes or an obligation to issue a notice of redemption."


...

Tags:

21 views0 comments

Comments


bottom of page