Credit Acceptance Corp. commenced a cash tender offer for any and all of the $300 million aggregate principal amount of its 6.125% senior notes due 2021.

The offer will expire at 5 p.m. ET on Dec. 13. Holders who validly tender and do not validly withdraw their notes at or before the expiration time will receive $1,002.80 for each $1,000 principal amount of notes accepted for purchase. Accrued and unpaid interest up to, but not including, the payment date, which is expected to be Dec. 18, will be paid in cash on all validly tendered notes accepted for purchase in the offer.

Wells Fargo Securities LLC will be the dealer manager in connection with the offer.

Additionally, the company announced and priced an offering of $400 million of 5.125% senior notes due 2024. The issue price is 100% of the principal amount of the notes.

The notes will be offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The closing of the sale is expected to occur on or about Dec. 18.

Credit Acceptance intends to use the net proceeds from the offering, together with borrowings under its revolving credit facility and cash on hand, to fund the cash tender offer for any and all of its outstanding senior notes due 2021. The company also plans to use the funds for the redemption of any 2021 notes that remain outstanding after the completion of tender offer; the redemption of all of its $250 million outstanding senior notes due 2023 on or around, but not before, March 15, 2020; and the payment of related fees and expenses.

Pending this application of the net proceeds from the offering, the net proceeds may be invested in short-term investments or applied to repay borrowings under the company's revolving credit facility without reducing the lenders' commitments.