Credit Acceptance Announces Extension of Revolving Secured Warehouse Facility

Rhea-AI Summary

Credit Acceptance Corporation (Nasdaq: CACC) announced an extension of its $400 million revolving secured warehouse facility's maturity date from July 12, 2022, to April 30, 2024. There were no changes to the terms of the facility. As of February 3, 2021, $75 million was outstanding under the facility. Credit Acceptance has been enabling automobile dealers to sell vehicles to consumers with poor credit since 1972, thus providing them an opportunity to improve their credit scores.

Positive

• Extended maturity of $400 million warehouse facility to April 30, 2024.
• No changes to the existing terms of the facility.

Negative

• Outstanding amount of $75 million under the facility indicates ongoing reliance on debt.

Southfield, Michigan, Feb. 03, 2021 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that we extended the date on which our $400.0 million revolving secured warehouse facility will cease to revolve from July 12, 2022 to April 30, 2024. There were no other material changes to the terms of the facility.

As of February 3, 2021, we had $75.0 million outstanding under the facility.

Description of Credit Acceptance Corporation

Since 1972, Credit Acceptance has offered financing programs that enable automobile dealers to sell vehicles to consumers, regardless of their credit history.  Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones.  Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing.  Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC.  For more information, visit creditacceptance.com.

FAQ

What is the new maturity date for Credit Acceptance Corporation's warehouse facility?

The new maturity date is April 30, 2024.

How much was outstanding under the warehouse facility as of February 3, 2021?

$75 million was outstanding under the facility.

What is the significance of Credit Acceptance Corporation's financing programs?

Their financing programs help consumers with poor credit access vehicle financing.

What is the stock symbol for Credit Acceptance Corporation?

The stock symbol is CACC.