Credit Acceptance Corp. completed its private offering of $400 million of its 5.125% senior notes due 2024, priced at 100% of the principal amount of the notes.
The company expects approximately $394 million in net proceeds, a portion of which was used by the company for the payment of the consideration in its cash tender offer and related fees and expenses.
Credit Acceptance intends to use the remaining net proceeds, together with borrowings under its revolving credit facility and cash on hand, to fund the redemption of the 2021 notes; 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.
Credit Acceptance also disclosed the results of its cash tender offer for any and all of its 6.125% senior notes due 2021, which expired at 5 p.m. ET on Dec. 13.
A total of approximately $148.2 million aggregate principal amount of 2021 notes was validly tendered and not validly withdrawn at or before the expiration time, representing approximately 49.4% of the $300 million aggregate principal amount of 2021 notes outstanding.
Holders of 2021 notes who validly tendered and did not validly withdraw their notes received $1,002.80 in cash for each $1,000 principal amount of 2021 notes accepted for purchase, plus accrued and unpaid interest to, but not including, the payment date.
The company will redeem Jan. 17, 2020, all of the 2021 notes that were not purchased in and remain outstanding following the completion of the tender offer, in accordance with the terms of the indenture governing the 2021 notes.
Wells Fargo Securities LLC was the dealer manager in connection with the tender offer.