Credit Acceptance Corporation Completes $110,000,000 Revolving Credit Agreement

Business Wire, June 15, 1999

SOUTHFIELD, Mich.--(BUSINESS WIRE)--June 15, 1999--

Credit Acceptance Corporation (Nasdaq:CACC) announced today that it has completed a $110 million credit agreement with a group of commercial banks which will replace its current credit facility.

Borrowings under the facility will bear interest at the bank's prime rate or 1.4% over the Eurocurrency rate. The agreement expires on June 13, 2000, and is secured by a lien on most of the company's assets on an equal and ratable basis with the company's senior notes.

The Company also announced that it has repurchased $5.9 million of its 9.12% senior notes due November 1, 2001, $5.4 million of its 8.24% senior notes due July 1, 2001 and $8.7 million of its 8.02% senior notes due October 1, 2001 pursuant to a $20 million tender offer dated May 12, 1999. The Company will benefit from a lower overall cost of funds in future periods as a result of this prepayment without incurring any significant expense related to this transaction in the current quarter. Subsequent to the completion of the tender offer, the Company has $45.5 million outstanding on its revolving credit agreement.

Credit Acceptance Corporation is a specialized financial services company which provides funding, receivables management, collection, sales training and related products and services to automobile dealers selling vehicles to consumers with limited access to traditional sources of consumer credit.