Credit Acceptance Announces Potential Asset-Backed Financing

Rhea-AI Summary

Credit Acceptance Corporation (Nasdaq: CACC) plans to issue approximately $294.0 million of asset-backed notes in Q4 2023 through special-purpose subsidiaries for general corporate purposes. The securities will not be registered under the Securities Act of 1933. The news release contains forward-looking statements.

Positive

• None.

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• The potential asset-backed financing transaction may not be completed, and the securities will not be registered under the Securities Act of 1933, making them unavailable for sale in the United States without registration or an applicable exemption.

Southfield, Michigan, Dec. 05, 2023 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that, subject to market conditions, the Company intends to complete an issuance of approximately $294.0 million of asset-backed notes during the fourth quarter of 2023 through one or more special-purpose subsidiaries, the net proceeds from which financing the Company expects would be used for general corporate purposes. No assurance can be given that the Company will commence or complete the potential asset-backed financing transaction.

Any securities offered and sold in the potential asset-backed financing transaction will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy any such securities.

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 potential asset-backed financing transaction and use of the net proceeds therefrom, 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, 2022, filed with the Securities and Exchange Commission (the “SEC”) on February 10, 2023, and Item 1A in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023, filed with the SEC on May 1, 2023, 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, future events or otherwise, except as required by applicable law.

FAQ

What is Credit Acceptance Corporation's (Nasdaq: CACC) plan for Q4 2023?

Credit Acceptance Corporation (Nasdaq: CACC) intends to complete an issuance of approximately $294.0 million of asset-backed notes through special-purpose subsidiaries for general corporate purposes.

Will the securities offered in the potential asset-backed financing transaction be registered under the Securities Act of 1933?

No, the securities offered will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption.

What cautionary statement is included in the news release?

The news release contains forward-looking statements that are not historical facts, indicating the Company's future results, plans, and objectives.