Credit Acceptance Announces Conditional Notice of Redemption for Outstanding Senior Notes Due 2026
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Credit Acceptance Corporation (CACC) has announced a conditional notice of redemption for its 6.625% senior notes due 2026, amounting to $400 million. The redemption is contingent on raising at least $400 million from a new offering of senior notes due 2030.
February 13, 2025 | 9:45 pm
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Credit Acceptance Corporation plans to redeem its 2026 senior notes, contingent on raising $400 million from a new 2030 notes offering. This move could impact the company's credit profile and interest expenses.
The redemption of the 2026 notes is contingent on successfully raising $400 million from a new notes offering. If successful, this could improve CACC's debt profile by potentially lowering interest expenses. However, the impact on stock price is neutral in the short term as it depends on the success of the new offering.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100