Credit Acceptance adds one warehouse facility, upsizes another

By Wendy Van Sickle

Columbus, Ohio, July 26 – Credit Acceptance Corp. completed a $200 million revolving secured warehouse facility with an institutional investor and increased another revolving warehouse facility to $300 million from $250 million, according to a press release on Friday.

Under the new facility, Credit Acceptance will contribute loans to a wholly owned special purpose entity, and the SPE may generally borrow up to the lesser of 80% of the value of the contributed loans or $200 million during the facility’s revolving period.

The facility will cease to revolve on July 26, 2022.

Borrowings will generally bear interest at Libor plus 190 basis points.

The revolving period of the upsized $300 million facility was extended to July 26, 2022 from April 30, 2020.

The interest rate on borrowings under that facility was decreased by 25 bps to Libor plus 200 bps.

As of July 26, the company did not have a balance outstanding under either facility.

Southfield, Mich.-based Credit Acceptance provides consumer auto loans.

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