Credit Acceptance, Nicholas Financial Adjust Credit Deals to Close Year
SOUTHFIELD, Mich. and CLEARWATER, Fla. — Credit Acceptance
Corp. and Nicholas Financial each modified credit arrangements to wrap up 2012
financial activities.
At Credit Acceptance, the company extended the date on which
its $325.0 million revolving secured warehouse facility will cease to revolve. The
date moved from June 17, 2014 to Dec. 27, 2015.
Officials explained the interest rate on borrowings under
the facility has been decreased from the commercial paper rate plus 2.75
percent to the commercial paper rate plus 2.0 percent.
"There were no other material changes to the terms of the
facility," they said.
As of Dec. 27, Credit Acceptance had $81.3 million
outstanding under the facility.
Meanwhile, Nicholas Financial announced that the company executed
an amendment to its bank credit line that extends the maturity date to Nov. 30,
2014.
Chairman and chief executive officer Peter Vosotas indicated
all other terms and conditions of the Nicholas Financial's credit line remain
in effect.
"We are pleased that our consortium of bank lenders has
agreed to extend the maturity date of our credit line," Vosotas said. "The credit
line will allow us to continue our careful expansion strategy during the next
two years.
"We continue to develop additional markets and expect to
open between two and four new branch locations during the remainder of our
current fiscal year, which ends March 31," he continued.
That newest branch now is operating as Nicholas Financial
added its 64th full service location last month in Troy, Mich., a suburb of
Detroit.
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