Credit Acceptance Announces Extension of Revolving Secured Warehouse Facility

Rhea-AI Summary

Credit Acceptance Corporation (Nasdaq: CACC) announced an extension of its $200 million revolving secured warehouse facility until September 1, 2024. This extension allows the company to maintain liquidity without any outstanding balance as of September 2, 2021. The financing programs offered by Credit Acceptance enable automobile dealers to sell vehicles to consumers with poor credit history, while also assisting these consumers in improving their credit scores. This initiative enhances vehicle access for a broader customer base and supports the overall business model.

Positive

• Extension of the $200 million revolving secured warehouse facility to September 1, 2024 enhances liquidity.
• No outstanding balance under the facility as of September 2, 2021.

Negative

• None.

Southfield, Michigan, Sept. 02, 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 $200.0 million revolving secured warehouse facility will cease to revolve from July 26, 2022 to September 1, 2024. There were no other material changes to the terms of the facility.

As of September 2, 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 new expiration date for Credit Acceptance Corporation's warehouse facility?

The new expiration date is September 1, 2024.

Does Credit Acceptance Corporation have any outstanding balance on its warehouse facility?

As of September 2, 2021, Credit Acceptance Corporation did not have any outstanding balance under the facility.

How does Credit Acceptance Corporation support consumers with poor credit?

Credit Acceptance enables automobile dealers to offer financing to consumers regardless of credit history, helping them purchase vehicles.

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

These programs allow consumers with poor credit to access vehicle financing and improve their credit scores.