Credit Acceptance Announces $400.0 Million Senior Notes Offering
Rhea-AI Summary
Credit Acceptance (Nasdaq: CACC) has announced plans to offer $400.0 million in senior notes due 2030. The company intends to use the proceeds, along with cash on hand, to redeem all of its outstanding 6.625% senior notes due 2026, which also total $400.0 million.
The new notes will be offered exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933. Pending the application of the net proceeds, the funds may be temporarily invested in short-term investments or used to repay borrowings under the company's revolving credit facility without reducing lenders' commitments.
Positive
- Refinancing of existing debt could potentially lead to better interest rates
- Maintaining financial flexibility through revolving credit facility access
Negative
- Taking on new debt to refinance existing debt indicates continued leverage
News Market Reaction
On the day this news was published, CACC gained 1.83%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Southfield, Michigan, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that it plans to offer
The notes will be offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The notes will not be registered under the Securities Act and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. This press release does not constitute a notice of redemption with respect to the 2026 notes or an obligation to issue any such notice of redemption.
Cautionary Statement Regarding Forward-Looking Information
Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements, which include statements concerning the offering of the notes and use of the net proceeds therefrom, represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2025, and other risk factors listed from time to time in our reports filed with the SEC. We do not undertake, and expressly disclaim any obligation, to update or alter our statements whether as a result of new information or future events or otherwise, except as required by applicable law.
FAQ
What is the size of Credit Acceptance's (CACC) new senior notes offering?
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