Credit Acceptance Announces Increase and Extension of Revolving Secured Line of Credit Facility

Rhea-AI Summary

Credit Acceptance Corporation (Nasdaq: CACC) increased its revolving credit facility from $340 million to $385 million and extended its maturity date to June 22, 2024. The facility's amount will decrease to $350 million in June 2022 and further to $325 million in June 2023. As of October 6, 2021, $189.7 million remains outstanding under this facility. This financing supports automobile dealers in providing credit options for consumers with varying credit histories, enhancing vehicle sales and consumer credit scores.

Positive

• Increased revolving credit facility from $340 million to $385 million.
• Extended maturity date to June 22, 2024, providing more time for financial stability.
• Supports automobile dealers, enabling them to sell more vehicles to underqualified consumers, thus generating more business.

Negative

• Amount will decrease to $350 million in June 2022 and $325 million in June 2023, potentially limiting future borrowing capacity.

Southfield, Michigan, Oct. 06, 2021 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that we have increased the amount of our revolving secured line of credit facility with a commercial bank syndicate from $340.0 million to $385.0 million. We have also extended the maturity of the facility from June 22, 2023 to June 22, 2024. The amount of the facility will decrease from $385.0 million to $350.0 million on June 22, 2022, and will further decrease from $350.0 million to $325.0 million on June 22, 2023.

As of October 6, 2021, we had $189.7 million outstanding under the line of credit facility.

There were no other material changes to the terms of 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 credit facility amount for Credit Acceptance Corporation (CACC)?

Credit Acceptance Corporation has increased its credit facility to $385 million.

When does the new maturity date for the credit facility expire?

The new maturity date for the credit facility is June 22, 2024.

How much does Credit Acceptance have outstanding under the line of credit?

As of October 6, 2021, Credit Acceptance had $189.7 million outstanding under the line of credit.

What will the credit facility amount decrease to in June 2022?

The credit facility amount will decrease to $350 million in June 2022.

How does Credit Acceptance support automobile dealers?

Credit Acceptance provides financing programs that enable dealers to sell vehicles to consumers with varying credit histories.