SOUTHFIELD, Mich. — Credit Acceptance Corp. has extended the maturity and increased the amount of its revolving secured line of credit facility, as well as extended the date on which its $325 million revolving secured warehouse facility will cease to revolve.

Credit Acceptance extended the maturity of its credit facility with a commercial bank syndicate from June 22, 2012 to June 22, 2014 and increased the amount of the facility from $170 million to $205 million.

Borrowings under the facility continue to bear interest at the prime rate plus 1.25 percent or the LIBOR rate plus 2.25 percent at its option. 

In addition to extending the maturity and increasing the amount of the facility, Credit Acceptance noted two material changes to the agreement:

—A floor on the LIBOR rate was eliminated.

"The elimination of the floor, which was set at 75 basis points, will reduce our cost of borrowing under this facility by the amount, if any, by which the floor exceeds the LIBOR rate," executives explained.

"Based on current Libor rates, the elimination of the floor will reduce our cost of borrowing under this facility by approximately 50 basis points," they added.

—The financial covenant requiring Credit Acceptance to maintain a minimum ratio of assets to debt was eliminated.

"The credit facility continues to be secured by a lien on most of our assets," management asserted. "As of June 17, we had $105.7 million outstanding under the facility."

Extension of $325 Million Revolving Secured Warehouse Facility

In other company financial news, Credit Acceptance also announced it extended the date on which its $325 million revolving secured warehouse facility will cease to revolve from June 15, 2013 to June 17, 2014.

Executives indicated the interest rate on borrowings under the facility has been decreased from the commercial paper rate plus 3.5 percent to the commercial paper rate plus 2.75 percent.

There were no other material changes to the terms of the facility, according to Credit Acceptance, which added that as of June 17 the company had $208 million outstanding under the facility.