Credit Acceptance Corporation, or CACC, commenced a tender offer to buy up to 996,000 shares of the company’s outstanding common stock at a price of $125.54 per share.
In a company release, CACC said it evaluated its operations, strategy and expectations for the future and believes the tender offer is a prudent use of its financial resources given its business profile, assets and the current market price for its shares.
As of September 15, 2014, CACC has $429.5 million in unused and available capacity on its revolving secured line of credit facility and its revolving secured warehouse facilities. The company expects to obtain all the funds it needs to buy the shares in the tender offer and will pay related fees and expenses by borrowing under its secured line of credit facility and/or pulling from its secured warehouse facilities.
