Note Class | Amount | Interest Rate | |||||
A | $ | 106,094,000 | 6.95 % | ||||
B | $ | 43,893,000 | 7.68 % | ||||
C | $ | 50,013,000 | 8.30 % |
The Financing will:
- have an expected average annualized cost of approximately 7.8% including placement agent fees and other costs;
- revolve for 36 months after which it will amortize based upon the cash flows on the conveyed loans; and
- be used by us to repay outstanding indebtedness and for general corporate purposes.
We will receive 4.0% of the cash flows related to the underlying consumer loans to cover servicing expenses. The remaining 96.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest to the institutional lender as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with dealers and to preserve the dealers’ rights to future payments of dealer holdback.
Description of
Since 1972,
Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing.
Investor Relations:Douglas W. Busk Chief Treasury Officer (248) 353-2700 Ext. 4432 IR@creditacceptance.com
Source:
2024 GlobeNewswire, Inc., source