SOUTHFIELD, Mich. — Credit Acceptance Corp. last week announced
the completion of a $140.3 million asset-backed non-recourse secured financing.

Pursuant to this transaction, the company said it
contributed loans having a net book value of approximately $187.8 million to a
wholly-owned special purpose entity which will transfer the loans to a trust.

This trust will issue three classes of notes:

Note Class Amount  Average
Life 		Price Interest
Rate
 A  $118,000,000  2.48
years		  99.98314%  1.21%
 B  $22,250,000  3.11
years		  99.97939%  1.83%
 C  $10,000,000  3.14
years 		 N/A  N/A

Officials said the Class C Note does not bear interest and
is being retained by Credit Acceptance.

Credit Acceptance explained the financing will:

—Have an expected annualized cost of approximately 1.8
percent including the initial purchaser's fees and other costs.

—Revolve for 24 months after which it will amortize based
upon the cash flows on the contributed loans

—Be used by the company to repay outstanding indebtedness.

"We will receive 6.0 percent of the cash flows related to
the underlying consumer loans to cover servicing expenses," Credit Acceptance
officials said.

"The remaining 94.0 percent, less amounts due to dealers for
payments of dealer holdback, will be used to pay principal and interest on the
notes as well as the ongoing costs of the financing," they continued.

"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," officials went on to say.

Credit Acceptance also mentioned the notes have not been and
will not be registered under the Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable exemption
from registration requirements. 

"This news release does not and will not constitute an offer
to sell or the solicitation of an offer to buy the notes," company officials
said. "This news release is being issued pursuant to and in accordance with
Rule 135c under the Securities Act of 1933."

Credit Acceptance is scheduled to report its first-quarter financial
statement Tuesday afternoon.


Normal
0
false
false
false
EN-US
X-NONE
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:”Times New Roman”;
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}

Continue the conversation with SubPrime Auto Finance News on LinkedIn and Twitter.