By Abigail W. Adams
Portland, Me., March 5 – Credit Acceptance Corp. priced $400 million of seven-year senior notes at par to yield 6 5/8% (existing Ba3/BB) on Tuesday following a brief roadshow, according to market sources.
Price talk was in the 6¾% area, according to market sources.
Wells Fargo Securities LLC is the left bookrunner. Credit Suisse Securities (USA) LLC and BMO Capital Markets Corp. are joint bookrunners for the Rule 144A and Regulation S offering.
Timing was accelerated with the deal initially expected to be marketed on a roadshow through Tuesday and to price on Wednesday.
The notes are non-callable for three years with the first call at par plus 50% of the coupon. There is an equity clawback of 35% at 106.625. The notes have a poison put of 101%.
Net proceeds are expected to be $394 million.
Proceeds will be used for general corporate purposes, which may include the repayment of debt under the company’s revolving credit facilities.
Credit Acceptance is a Southfield, Mich.-based auto finance company.
| Issuer: | Credit Acceptance Corp.
|
| Amount: | $400 million
|
| Maturity: | March 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC and BMO Capital Markets Corp.
|
| Co-managers: | Citizens Capital Markets, Inc., Comerica Securities Inc., Fifth Third Securities Inc., Huntington Investment Co., KeyBanc Capital Markets
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| First call: | March 15, 2022 at 103.313
|
| Equity clawback: | 35% at 106.625
|
| Trade date: | March 5
|
| Settlement date: | March 7
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
|
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