Acceptance of Credit Announces Completion of $ 500.0 Million Asset-Backed Financing

Southfield, Michigan, February 18, 2021 (GLOBE NEWSWIRE) – Credit Acceptance Corporation (Nasdaq: CACC) (the “Company”, “the Credit Acceptance”, “we”, “us” or “us”) today announced the completion of an asset-backed non-recourse secured financing of $ 500.0 million. dollars (the “Funding”). As part of this transaction, we made loans worth approximately $ 625.1 million to a wholly owned special purpose entity that will transfer the loans to a trust, which will issue three classes of notes:

Note Class

Rising

Average life

Price

Interest rate

A

$

354,820,000

2.68 years

99.99980

%

0.96

%

B

$

51,880,000

3.52 years

99.99766

%

1.26

%

VS

$

93,300,000

3.79 years

99.96949

%

1.64

%

Funding :

  • have an expected annualized cost of approximately 1.4%, including initial purchase charges and other costs;

  • run for 24 months after which it will be amortized according to the cash flows on the loans made; and

  • be used by us to pay off unpaid debt.

We will receive 4.0% of the underlying consumer loan cash flow to cover management fees. The remaining 96.0%, less amounts owed to brokers for brokerage holdback payments, will be used to pay principal and interest on the Notes as well as ongoing financing charges. The Funding is structured so as not to affect our contractual relationships with our dealers and to preserve the rights of dealers to future dealer holdback payments.

The Notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy the Notes. This press release is issued in accordance with Rule 135c of the Securities Act of 1933.

Description of the credit acceptance company

Since 1972, Credit Acceptance has offered financing programs that allow automobile dealers to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealerships that benefit from the sale of vehicles to consumers who would otherwise not be able to obtain financing; repeat and referral sales generated by these same customers; and sales to customers who respond to advertisements for our financing programs, but who eventually qualify for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable vehicles. Additionally, as we report to the three national credit bureaus, an important ancillary benefit of our programs is that we provide consumers with the opportunity to improve their lives by improving their credit rating and switching to sources of credit. more traditional financing. Credit acceptance is listed on the Nasdaq Stock Exchange under the symbol CACC. For more information visit creditacceptation.com.

CONTACT: Investor Relations: Douglas W. Busk Chief Treasury Officer (248) 353-2700 Ext. 4432 [email protected]

About Leni Loberns

Check Also

SBP asks banks to only finance purchases of fresh wheat

KARACHI: The central bank has advised banks to ensure that the private sector uses the …