Credit Acceptance Announces Completion of $200.0 Million Revolving Secured Warehouse Facility and Increase and Extension of $250.0 Million Revolving Secured Warehouse Facility
Under this facility, we will contribute loans to a wholly-owned special purpose entity (“SPE”) and the SPE may generally borrow up to the lesser of 80% of the value of the contributed loans, as defined in the agreement, or
Borrowings under the facility will generally bear interest at a rate equal to LIBOR plus 190 basis points.
We will receive a servicing fee of 6.0% of the cash flows related to the underlying consumer loans. The remaining 94.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest on the notes as well as the ongoing costs of the financing. Using a unique financing structure, our contractual relationships with our dealers remain unaffected with the dealers’ rights to future payments of dealer holdback preserved.
Additionally, we announced today that we increased the financing amount on our
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
Douglas W. BuskSenior Vice President and Treasurer (248) 353-2700 Ext. 4432 IR@creditacceptance.com
Source: Credit Acceptance Corporation