By Abigail W. Adams
Portland, Me., Dec. 5 – Credit Acceptance Corp. priced an upsized $600 million five-year senior notes (Ba3/BB) on Tuesday at par to yield 9¼%, according to a market source.
Pricing came at the tight end of talk for a yield of 9¼% to 9½%. Early guidance was for a yield in the high 9% area.
Timing for the deal was accelerated with pricing initially expected on Wednesday. The initial size of the offering was $500 million.
The notes are non-callable for two years.
Wells Fargo Securities LLC (lead left) and BMO Capital Markets Corp. were bookrunners for the Rule 144A offering.
There is an equity clawback of up to 40% and a 101 poison put.
Proceeds will be used to fund the tender offer for the company’s 5 1/8% senior notes due 2024 and for general corporate purposes.
Credit Acceptance is a Southfield, Mich.-based auto finance company.
| Issuer: | Credit Acceptance Corp.
|
| Amount: | $600 million
|
| Issue: | Senior notes
|
| Maturity: | Dec. 15, 2028
|
| Joint bookrunners: | Wells Fargo Securities LLC (lead left) and BMO Capital Markets Corp.
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 512 bps
|
| First call: | Dec. 15, 2025 at 104.625
|
| Equity clawback: | Up to 40%
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 19
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A
|
| Price talk: | 9¼% to 9½%
|
| Marketing: | Investor call
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
