Credit Acceptance Corporation announced on February 13, 2025, its plan to offer $500.0 million aggregate principal amount of 6.625% senior notes due 2030. This offering size represents an increase from the previously announced $400.0 million. The company intends to use the net proceeds to fund the redemption of all $400.0 million of its outstanding 6.625% senior notes due 2026.
The redemption of the 2026 notes is conditional upon the successful receipt of proceeds from the new senior notes offering. This refinancing strategy aims to extend the maturity profile of the company's debt. Any net proceeds remaining after the redemption and associated fees will be allocated for general corporate purposes, providing additional financial flexibility.
The new notes are being offered to qualified institutional buyers, and the closing of the sale is expected around February 28, 2025. This move allows Credit Acceptance to manage its debt obligations proactively. The additional capital for general corporate purposes supports ongoing business operations and strategic initiatives.
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