Credit Acceptance Announces Closing of $500.0 Million Senior Notes Offering and Completion of Redemption of Senior Notes Due 2026
Credit Acceptance (Nasdaq: CACC) has successfully closed its previously announced $500.0 million senior notes offering and completed the redemption of its 2026 senior notes. The new notes, due 2030, carry a 6.625% interest rate and were issued at 100% of principal value.
The company expects net proceeds of approximately $492.9 million after deducting initial purchasers' discount and offering expenses. A portion of these proceeds will fund the redemption of the 2026 notes and related expenses, with the remainder allocated for general corporate purposes.
The notes were exclusively offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and will not be registered under the Securities Act, limiting their sale and transfer in the United States.
Credit Acceptance (Nasdaq: CACC) ha chiuso con successo la sua offerta di note senior da 500,0 milioni di dollari precedentemente annunciata e ha completato il riscatto delle sue note senior del 2026. Le nuove note, in scadenza nel 2030, portano un tasso d'interesse del 6,625% e sono state emesse al 100% del valore nominale.
L'azienda si aspetta proventi netti di circa 492,9 milioni di dollari dopo aver dedotto lo sconto per i compratori iniziali e le spese di offerta. Una parte di questi proventi sarà destinata al riscatto delle note del 2026 e alle spese correlate, mentre il resto sarà allocato per scopi aziendali generali.
Le note sono state offerte esclusivamente a compratori istituzionali qualificati ai sensi della Regola 144A del Securities Act del 1933 e non saranno registrate ai sensi del Securities Act, limitando così la loro vendita e trasferimento negli Stati Uniti.
Credit Acceptance (Nasdaq: CACC) ha cerrado con éxito su oferta de notas senior de 500,0 millones de dólares previamente anunciada y ha completado el rescate de sus notas senior de 2026. Las nuevas notas, con vencimiento en 2030, tienen una tasa de interés del 6,625% y se emitieron al 100% del valor nominal.
La compañía espera ingresos netos de aproximadamente 492,9 millones de dólares después de deducir el descuento de los compradores iniciales y los gastos de oferta. Una parte de estos ingresos se destinará al rescate de las notas de 2026 y los gastos relacionados, mientras que el resto se asignará a fines corporativos generales.
Las notas se ofrecieron exclusivamente a compradores institucionales calificados bajo la Regla 144A de la Ley de Valores de 1933 y no se registrarán bajo la Ley de Valores, limitando así su venta y transferencia en los Estados Unidos.
크레딧 수용 (Nasdaq: CACC)은 이전에 발표된 5억 달러 규모의 선순위 채권 공모를 성공적으로 마감하고 2026년 선순위 채권의 상환을 완료했습니다. 새로운 채권은 2030년에 만기가 도래하며, 이자율은 6.625%이고 액면가의 100%로 발행되었습니다.
회사는 초기 구매자 할인 및 공모 비용을 공제한 후 약 4억 9,290만 달러의 순수익을 예상하고 있습니다. 이 수익의 일부는 2026년 채권의 상환 및 관련 비용에 사용되며, 나머지는 일반 기업 목적에 할당됩니다.
이 채권은 1933년 증권법의 144A 조항에 따라 자격을 갖춘 기관 투자자에게만 제공되며, 증권법에 따라 등록되지 않아 미국 내에서의 판매 및 이전이 제한됩니다.
Credit Acceptance (Nasdaq: CACC) a réussi à finaliser son émission de billets senior de 500,0 millions de dollars précédemment annoncée et a complété le rachat de ses billets seniors de 2026. Les nouveaux billets, arrivant à échéance en 2030, portent un taux d'intérêt de 6,625 % et ont été émis à 100 % de leur valeur nominale.
L'entreprise s'attend à des produits nets d'environ 492,9 millions de dollars après déduction de la remise accordée aux premiers acheteurs et des frais d'émission. Une partie de ces produits sera utilisée pour le rachat des billets de 2026 et les frais connexes, le reste étant alloué à des fins d'entreprise générales.
Les billets ont été offerts exclusivement à des acheteurs institutionnels qualifiés en vertu de la Règle 144A de la Loi sur les valeurs mobilières de 1933 et ne seront pas enregistrés en vertu de cette loi, limitant ainsi leur vente et leur transfert aux États-Unis.
Credit Acceptance (Nasdaq: CACC) hat erfolgreich die zuvor angekündigte Emission von Senior Notes in Höhe von 500,0 Millionen US-Dollar abgeschlossen und die Rückzahlung seiner Senior Notes von 2026 vollzogen. Die neuen Notes, die 2030 fällig werden, haben einen Zinssatz von 6,625% und wurden zu 100% des Nennwerts ausgegeben.
Das Unternehmen erwartet Nettomittel in Höhe von etwa 492,9 Millionen US-Dollar, nachdem der Rabatt für die Erstkäufer und die Angebotskosten abgezogen wurden. Ein Teil dieser Mittel wird zur Rückzahlung der 2026er Notes und der damit verbundenen Kosten verwendet, während der Rest für allgemeine Unternehmenszwecke vorgesehen ist.
Die Notes wurden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A des Securities Act von 1933 angeboten und werden nicht unter dem Securities Act registriert, was ihren Verkauf und Transfer in den Vereinigten Staaten einschränkt.
- Successfully raised $500M through senior notes offering
- Net proceeds of $492.9M strengthen company's financial position
- Refinancing extends debt maturity from 2026 to 2030
- New notes maintain same 6.625% interest rate as previous notes, showing no interest cost improvement
- Additional offering fees and expenses reduce net proceeds by $7.1M
Insights
Credit Acceptance's $500 million refinancing deal represents a strategic debt management move that maintains the company's interest expense while extending maturity. The new notes carry the same 6.625% interest rate as the redeemed 2026 notes but push the maturity out to 2030, providing 4 additional years of capital certainty in an uncertain rate environment.
The transaction is essentially leverage-neutral as it replaces existing debt rather than adding to it. After offering expenses, the company netted approximately
For a company with a
The refinancing provides additional flexibility by freeing up near-term obligations, allowing Credit Acceptance to focus on its core business of providing auto loans to subprime consumers. This breathing room is particularly valuable considering the challenging consumer credit environment with rising delinquencies across the auto lending sector.
This refinancing demonstrates Credit Acceptance's forward-looking approach to managing refinancing risk. By proactively addressing debt maturing in 2026, management has eliminated a potential liquidity pressure point during uncertain economic conditions. The identical
The allocation of "remaining net proceeds for general corporate purposes" gives management additional flexibility that could be deployed for share repurchases, portfolio growth, or maintaining liquidity buffers against rising delinquencies. Given Credit Acceptance's focus on the subprime auto lending segment, maintaining financial flexibility is particularly valuable amid concerns about consumer credit deterioration.
The private placement through Rule 144A indicates Credit Acceptance targeted institutional investors rather than retail markets, suggesting they sought sophisticated investors familiar with their business model. The identical interest rate suggests Credit Acceptance didn't need to pay a premium despite extending the maturity, indicating stable market perception of the company's credit quality.
The transaction's timing aligns with a period of relative stability in credit markets, allowing the company to secure medium-term financing before any potential deterioration in credit conditions or company performance could drive rates higher. This defensive financial engineering fortifies their balance sheet without improving their fundamental business operations or reducing interest expenses.
Southfield, Michigan, Feb. 28, 2025 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the closing of the Company’s previously announced offering of
The Company also announced today that it completed the previously announced redemption (the “Redemption”) of all of its
The Company expects the net proceeds from the offering of the notes, after deducting the initial purchasers’ discount and other offering fees and expenses, will be approximately
The notes were offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under 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.
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 amount and application of the net proceeds from the offering of the notes, 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 interest rate and maturity of Credit Acceptance's (CACC) new senior notes?
How much did Credit Acceptance (CACC) raise in their February 2025 senior notes offering?
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