SOUTHFIELD, Mich. — While Credit Acceptance announced last week that it intended to offer $225 million of first priority senior secured notes due in 2017, the company came back out this week saying that it has priced $250 million of these notes.

The issue price is 97.495 percent of the principal amount of the notes. The sale is expected to close on or about Feb. 1 and is subject to customary closing conditions.

Officials pointed out that the notes will be guaranteed by some of the company's subsidiaries on a first priority senior secured basis.

"We intend to use the net proceeds from the offering to repay all outstanding borrowing under our revolving credit facility with a commercial bank syndicate and, to the extent the net proceeds exceed that amount, to repay outstanding borrowings under our $325 million secured warehouse facility with an institutional investor," officials explained.

The notes will not be registered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements, the company noted.