Credit Acceptance Announces $400.0 Million Senior Notes Offering
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.
Credit Acceptance (Nasdaq: CACC) ha annunciato piani per offrire 400,0 milioni di dollari in note senior con scadenza nel 2030. L'azienda intende utilizzare i proventi, insieme ai fondi disponibili, per riscattare tutte le sue note senior 6,625% in scadenza nel 2026, che ammontano anch'esse a 400,0 milioni di dollari.
Le nuove note saranno offerte esclusivamente a compratori istituzionali qualificati ai sensi della Regola 144A del Securities Act del 1933. In attesa dell'applicazione dei proventi netti, i fondi potrebbero essere temporaneamente investiti in investimenti a breve termine o utilizzati per rimborsare prestiti nell'ambito della linea di credito revolving dell'azienda senza ridurre gli impegni dei creditori.
Credit Acceptance (Nasdaq: CACC) ha anunciado planes para ofrecer 400,0 millones de dólares en notas senior con vencimiento en 2030. La compañía tiene la intención de utilizar los ingresos, junto con el efectivo disponible, para redimir todas sus notas senior 6,625% con vencimiento en 2026, que también totalizan 400,0 millones de dólares.
Las nuevas notas se ofrecerán exclusivamente a compradores institucionales calificados bajo la Regla 144A de la Ley de Valores de 1933. A la espera de la aplicación de los ingresos netos, los fondos pueden ser temporalmente invertidos en inversiones a corto plazo o utilizados para pagar préstamos bajo la línea de crédito revolvente de la compañía sin reducir los compromisos de los prestamistas.
크레딧 수용 (Nasdaq: CACC)은 2030년 만기인 4억 달러 규모의 선순위 채권을 제공할 계획을 발표했습니다. 이 회사는 수익금과 보유 현금을 함께 사용하여 2026년 만기인 6.625% 선순위 채권을 모두 상환할 예정이며, 이 또한 4억 달러에 달합니다.
새로운 채권은 1933년 증권법의 144A 규정에 따라 자격을 갖춘 기관 투자자에게만 제공됩니다. 순수익의 적용을 기다리는 동안, 자금은 단기 투자에 임시로 투자되거나 회사의 회전 신용 한도 내에서 차입금을 상환하는 데 사용될 수 있으며, 이는 대출자의 약속을 줄이지 않습니다.
Credit Acceptance (Nasdaq: CACC) a annoncé des plans pour offrir 400,0 millions de dollars en obligations senior arrivant à échéance en 2030. La société a l'intention d'utiliser les produits, ainsi que les liquidités disponibles, pour racheter toutes ses obligations senior 6,625% arrivant à échéance en 2026, qui totalisent également 400,0 millions de dollars.
Les nouvelles obligations seront offertes exclusivement à des acheteurs institutionnels qualifiés en vertu de la règle 144A de la loi sur les valeurs mobilières de 1933. En attendant l'application des produits nets, les fonds peuvent être temporairement investis dans des investissements à court terme ou utilisés pour rembourser des emprunts dans le cadre de la facilité de crédit renouvelable de l'entreprise sans réduire les engagements des prêteurs.
Credit Acceptance (Nasdaq: CACC) hat Pläne angekündigt, 400,0 Millionen Dollar an Senior Notes mit Fälligkeit im Jahr 2030 anzubieten. Das Unternehmen beabsichtigt, die Erlöse zusammen mit vorhandenen liquiden Mitteln zu verwenden, um alle ausstehenden 6,625% Senior Notes mit Fälligkeit 2026 zurückzukaufen, die ebenfalls 400,0 Millionen Dollar betragen.
Die neuen Notes werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A des Securities Act von 1933 angeboten. Bis zur Verwendung der Nettoerlöse können die Mittel vorübergehend in kurzfristige Investitionen angelegt oder zur Rückzahlung von Darlehen aus der revolvierenden Kreditfazilität des Unternehmens verwendet werden, ohne die Verpflichtungen der Kreditgeber zu verringern.
- Refinancing of existing debt could potentially lead to better interest rates
- Maintaining financial flexibility through revolving credit facility access
- Taking on new debt to refinance existing debt indicates continued leverage
Insights
This strategic debt refinancing initiative carries several significant implications for Credit Acceptance's financial position and operational flexibility. The replacement of the
The timing of this refinancing is particularly noteworthy. With the existing notes not maturing until 2026, this early refinancing suggests management's strategic view on interest rate trajectories and market conditions. The flexibility to temporarily apply proceeds to the revolving credit facility demonstrates sophisticated treasury management, potentially reducing interest expenses during the transition period.
The extension of maturity to 2030 provides enhanced financial flexibility and improved debt maturity laddering. This restructuring could potentially result in meaningful interest expense savings, depending on the new notes' pricing, which would directly impact the bottom line. The Rule 144A offering structure, targeting qualified institutional buyers, typically allows for faster execution and lower transaction costs compared to registered public offerings.
A key aspect to monitor will be the pricing of the new notes, as this will determine the actual financial benefit of the refinancing. The company's ability to successfully place
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?
What will CACC use the proceeds from the 2030 senior notes for?
Who can purchase CACC's new 2030 senior notes?
What are the interim uses of the proceeds from CACC's 2030 notes offering?
