Credit Acceptance Corporation Announces Completion of $100 Million Warehouse Facility.Business Editors SOUTHFIELD, Mich.--(BUSINESS WIRE)--Oct. 3, 2003 Credit Acceptance (Nasdaq:CACC CACC Center for Animal Care and Control CACC Canadian Association for Community Care CACC Central Alabama Community College CACC Chilterns Association of Camera Clubs (United Kingdom) ) announced today the completion of a $100 million revolving warehouse facility with Variable Funding Capital Corporation, a multi-seller commercial paper conduit conduit /con·du·it/ (kon´doo-it) channel. ileal conduit the surgical anastomosis of the ureters to one end of a detached segment of ileum, the other end being used to form a stoma on the administered by Wachovia Securities Wachovia Securities, located in Richmond, Virginia (soon to be moved to St. Louis), is the third largest brokerage firm in the United States as of 2006 with $689 billion retail client assets under management. It is a subsidiary of Wachovia Corporation. . Under this facility the Company may contribute dealer advances to a wholly owned special purpose entity (the "SPE SPE - Software Practice and Experience ") and receive 70% of the net book value of the dealer advances in non-recourse financing. The Company did not make a draw on the facility at closing. The facility matures September 28, 2004 with draws under the facility bearing interest at a floating rate equal to the commercial paper rate plus 65 basis points with the maximum rate limited by an interest rate cap agreement, which will be executed at the time the Company draws on the facility. Based upon current rates, the expected annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. cost of the financing, including placement fees, interest and other costs, is approximately 5.3%. The financing is secured by the dealer advances and the rights to collections on the related automobile loans receivable contributed to the SPE up to the sum of the related dealer advance and the Company's servicing fee. The Company will retain 6% of the cash flows related to the underlying automobile loans to cover servicing expenses. The remaining 94%, less amounts due to dealer-partners for payments of dealer-partner holdback hold·back n. 1. a. The act of holding back. b. Something held back. 2. A device that retains or restrains. 3. , will be used to service the indebtedness. Using a unique financing structure, the Company's contracted relationship with its dealer-partners remains unaffected. The dealer-partners' rights to future payments of dealer holdback are preserved and the Company will continue to recognize its servicing fee on amounts collected. Credit Acceptance is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company specializing in products and services for a network of automobile dealer-partners. Credit Acceptance provides its dealer-partners with financing sources for consumers with limited access to credit and delivers credit approvals instantly through the internet. Other dealer-partner services include marketing, sales training and a wholesale purchasing cooperative purchasing cooperative, n a group of dental professionals pooling their financial resources to purchase large quantities of supplies and equipment for the purpose of obtaining a discount. . Through its financing program, Credit Acceptance helps consumers change their lives by providing them an opportunity to strengthen and reestablish their credit standing by making timely monthly payments. Credit Acceptance is publicly traded on the NASDAQ National Market under the symbol CACC. |
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