U.S. Raises Alarm Over Chinese AI Firms’ Alleged IP Theft Through Model Distillation 
Rising Jet Fuel Costs from Iran Conflict Push Airfare Higher Across Europe 
Judge Dismisses Elon Musk’s Fraud Claims Against OpenAI, Trial to Proceed on Remaining Allegations 
SpaceX President Gwynne Shotwell Earns $85.8M as IPO Buzz Grows 
Brazil Blocks Prediction Market Platforms, Tightens Derivatives Trading Rules 
U.S. Sanctions Target Chinese Refinery Over Iranian Oil Purchases 
Microsoft Commits $18 Billion to Expand AI and Cloud Infrastructure in Australia 
Nvidia Pushes 800V Data Center Power Systems to Boost Efficiency and Cut Costs 
Meta Expands AI Training With Employee Activity Tracking Tools 
LG Innotek Stock Hits Record High on $68M Automotive Wi-Fi 7 Deal 
Florida Investigates OpenAI and ChatGPT Over Alleged Role in FSU Shooting 
Mercedes-Benz Faces Rising Competition in China but Rejects Price War Strategy 
SK Hynix Reports Record Q1 Profit Surge Driven by AI Memory Chip Demand 
$16B Michigan Data Center Project Boosts U.S. AI Infrastructure Expansion 
Why Global Web3 Projects Can't Afford to Skip South Korea: TokenPost Unveils Data-Driven Entry Solutions 
European Car Sales Surge in March as EV and Hybrid Demand Accelerates 
SK Hynix to Invest $13 Billion in AI Chip Packaging Facility 
Southfield, Michigan, Feb. 26, 2016 -- Credit Acceptance Corporation (NASDAQ: CACC) (the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the completion of a $385.0 million asset-backed non-recourse secured financing (the “Financing”). Pursuant to this transaction, we contributed loans having a net book value of approximately $481.4 million to a wholly-owned special purpose entity that will pledge the loans to institutional lenders under a loan and security agreement.
The Financing will:
- bear interest at one-month LIBOR plus 195 basis points;
- revolve for 24 months after which it will amortize based upon the cash flows on the contributed loans; and
- be used by us to repay outstanding indebtedness and for general corporate purposes.
We will receive 6.0% of the cash flows related to the underlying consumer loans to cover servicing expenses. The remaining 94.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest to the institutional lenders as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with our dealers and to preserve the dealers’ rights to future payments of dealer holdback.
Description of Credit Acceptance Corporation
Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.
Without our financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide our consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.
Investor Relations: Douglas W. Busk Senior Vice President and Treasurer (248) 353-2700 Ext. 4432 [email protected]
