Credit Acceptance Announces Extension and Modifications of Credit Agreement

Subprime auto financier Credit Acceptance Corporation (NasdaqGM: CACC) announced today that it has extended the maturity of its credit facility with a commercial bank syndicate from June 20, 2008 to June 20, 2009. The company also reduced the amount of the facility from $135 million to $75 million because the amount of borrowings available under this facility and Credit Acceptance's $325 million warehouse facility exceed the company's current borrowing needs.

The interest rate on borrowings under the facility has been reduced from the prime rate or 1.30% over the Eurocurrency rate, at the company's option to the prime rate minus 1.65% or 1.25% over the Eurocurrency rate, at the company's option. In addition, the borrowing base limitation was modified to increase the advance rate from 75% to 80% of the net book value of dealer loans and from 75% to 80% of the net book value of consumer loans purchased by the company. The agreement continues to be secured by a lien on most of the company's assets. As of June 13, 2007 the company had $59.7 million outstanding under the agreement.

Be the First To Comment

(Please read our comments policy first.)

From:
Show my identity with comment
Your Comment:

Leave this field empty