Credit Acceptance Corporation announced on February 28, 2025, the successful closing of its previously announced offering of $500.0 million aggregate principal amount of 6.625% senior notes due 2030. The notes were issued at 100% of their principal amount in a private offering. This transaction provides significant capital to the company.
Concurrently, the company completed the redemption of all its $400.0 million outstanding 6.625% senior notes due 2026. This redemption was funded using a portion of the net proceeds from the new offering. The successful refinancing extends the maturity of a significant portion of the company's debt.
After deducting initial purchasers' discounts and other offering expenses, the net proceeds from the offering are approximately $492.9 million. The remaining net proceeds, after funding the redemption, will be used for general corporate purposes. This provides Credit Acceptance with enhanced financial flexibility and liquidity for future operations and investments.
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