Credit Acceptance Announces Extension of Revolving Secured Warehouse Facility

Rhea-AI Summary

Credit Acceptance Corporation (Nasdaq: CACC) has announced an extension on its $75.0 million revolving secured warehouse facility, moving the cease-to-revolve date from September 30, 2022, to September 30, 2024. Notably, there are no material changes to the terms of this facility. As of October 15, 2021, the company reported no outstanding balance under this facility. Established in 1972, Credit Acceptance provides financing programs that enable automobile dealers to sell vehicles to consumers with varied credit histories, fostering financial accessibility and credit improvement for customers.

Positive

• Extension of revolving secured warehouse facility until September 30, 2024.
• No outstanding balance under the facility as of October 15, 2021.

Negative

• None.

Southfield, Michigan , Oct. 15, 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 $75.0 million revolving secured warehouse facility will cease to revolve from September 30, 2022 to September 30, 2024. There were no other material changes to the terms of the facility.

As of October 15, 2021, we did not have a balance 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 significance of Credit Acceptance's warehouse facility extension?

The extension allows Credit Acceptance to maintain financial flexibility and access to funds through September 30, 2024.

What was the outstanding balance of Credit Acceptance's warehouse facility as of October 15, 2021?

Credit Acceptance reported no outstanding balance under the facility.

How does Credit Acceptance assist consumers with their financing programs?

Credit Acceptance enables consumers, regardless of credit history, to purchase vehicles, helping them improve their credit scores.

What is the new cease-to-revolve date for Credit Acceptance's facility?

The new cease-to-revolve date for the warehouse facility is September 30, 2024.