Credit Acceptance extends maturity, changes size, pricing, covenants

By Sara Rosenberg

New York, June 15 - Credit Acceptance Corp. extended the maturity of its credit facility to June 23, 2011 from June 22, 2010, according to a news release.

In connection with the extension, the facility size was reduced to $140 million from $153.5 million and pricing was increased to Libor plus 275 basis points from Libor plus 125 bps.

There is a 1.5% Libor floor.

In addition, the maximum funded debt to tangible net worth ratio was reduced to 3.25 to 1.0 from 4.0 to 1.0, the minimum fixed-charge coverage ratio was increased to 2.0 to 1.0 from 1.75 to 1.0 and the minimum asset coverage ratio was increased to 1.1 to 1.0 from 1.0 to 1.0.

As of Monday, the company had $107.6 million outstanding under the facility.

Credit Acceptance is a Southfield, Mich.-based provider of auto loans to consumers.

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