Accepting Credit Announces Ex – GuruFocus.com
Southfield, Michigan, June 22, 2022 (GLOBE NEWSWIRE) — Credit Acceptance Company (CACC) (hereinafter referred to as the “Company”, “Acceptance of Credit”, “we”, “us” or “our”) announced today that we have extended the maturity of our secured revolving line of credit with a commercial banking syndicate from June 22, 2024 to June 22, 2025. Prior to this amendment, the amount of the facility was expected to decrease by $35.0 million on June 22, 2022, but this amendment increased the amount of the facility by 10, $0 million, resulting in a net decrease of $25.0 million, from $435.0 million to $410.0 million. As previously disclosed, the amount of the facility will continue to decrease by $25.0 million on June 22, 2023.
In addition, this change removed the covenant that required us to maintain consolidated net earnings of at least $1 for the last two completed fiscal quarters.
As of June 22, 2022, we had $192.5 million outstanding under the credit facility.
No other material changes were made to the terms of the facility.
Description of Credit Acceptance Corporation
Since 1972, Credit Acceptance has provided financing programs that allow automotive dealerships to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automotive dealerships who profit from selling vehicles to consumers who otherwise could not obtain financing; repeat and referral sales generated by those same customers; and sales to customers responding to advertisements for our financing programs, but ultimately qualifying for traditional financing.
Without our financing programs, consumers are often unable to purchase vehicles or purchase unreliable ones. Additionally, as we report to the three national credit bureaus, an important co-benefit of our programs is that we offer consumers the opportunity to improve their lives by improving their credit score and switching to sources of more traditional funding. Credit Acceptance is listed on the Nasdaq stock exchange under the symbol CACC. For more information, visit creditacceptance.com.