Exhibit (a)(5)(v)
SILVER TRIANGLE BUILDING
25505 WEST TWELVE MILE ROAD O SUITE 3000
SOUTHFIELD, MI 48034-8339
(248) 353-2700
WWW.CREDITACCEPTANCE.COM
NEWS RELEASE
FOR IMMEDIATE RELEASE DATE: AUGUST 28, 2006
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INVESTOR RELATIONS: DOUGLAS W. BUSK
TREASURER
(248) 353-2700 EXT. 4432
IR@CREDITACCEPTANCE.COM
NASDAQ SYMBOL: CACC
CREDIT ACCEPTANCE ANNOUNCES:
MODIFIED DUTCH AUCTION TENDER OFFER
SOUTHFIELD, MICHIGAN -- AUGUST 28, 2006 -- CREDIT ACCEPTANCE CORPORATION
(NASDAQ: CACC) (the "Company") announced today that it has commenced a modified
dutch auction tender offer to purchase up to 3,500,000 of its outstanding common
stock at a price per share of $28.00 to $31.50. The tender offer will expire at
5:00 p.m., Eastern Standard Time, Tuesday, September 26, 2006, unless extended
by Credit Acceptance. Tenders of shares must be made on or prior to the
expiration of the tender offer and shares may be withdrawn at any time on or
prior to the expiration of the tender offer. Credit Acceptance's obligation to
purchase is subject to the conditions set forth in the offer to purchase and
letter of transmittal documents being sent to shareholders. The Company will be
releasing operating results for the two months ended August 31, 2006, prior to
the expiration of the tender offer.
Under the tender offer, shareholders of Credit Acceptance common stock will be
invited to choose a price at which they are willing to sell their shares to
Credit Acceptance, within the range of $28.00 to $31.50 per share. Credit
Acceptance will then select the lowest single purchase price that will allow it
to buy up to 3,500,000 shares of stock, or such lesser number of shares as are
properly tendered and not withdrawn. All shares acquired in the tender offer
will be purchased at the same purchase price regardless of whether the
shareholder selected a lower price. If more than the maximum number of shares
sought is tendered, tendering shareholders owning fewer than 100 shares will
have their shares purchased without proration and all other shares will be
purchased on a pro rata basis, subject to the conditional tender provisions
described in the Offer to Purchase. Shareholders whose shares are purchased in
the tender offer will be paid the purchase price net in cash, without interest,
promptly after the expiration of the tender offer. Shareholders whose shares are
not purchased in the tender offer will have their shares returned to them, free
of charge, promptly after the expiration of the tender offer. The offer is not
contingent upon any minimum number of shares being tendered.
Credit Acceptance anticipates that it will obtain all of the funds necessary to
purchase shares tendered in the tender offer, and to pay related fees and
expenses, from existing cash reserves and by borrowing under its $325 million
revolving warehouse facility and its $135 million revolving credit facility. The
tender offer is not conditioned upon the receipt of financing.
Donald Foss, the Company's Chairman of the Board and majority shareholder, has
indicated his non-binding intention to tender 20.0 million shares. If Mr. Foss
tenders 20.0 million shares as he has indicated, the proration factor will be
substantially impacted such that only a limited number of shares properly
tendered by shareholders other than odd lot holders would be purchased and no
shares conditionally tendered would be purchased. In addition, the price at
which Mr. Foss tenders his shares would likely be the price at which Credit
Acceptance purchases shares in the offer. Shares tendered at any price above the
price chosen by Mr. Foss would not be purchased and shares tendered at or below
the price chosen by Mr. Foss would be purchased on a pro rata basis. Mr. Foss is
tendering this amount of shares because he does not want to increase his
ownership percentage in the Company. One other officer of the Company has
advised Credit Acceptance that he intends to tender shares in the offer. For
further information, refer to the Offer to Purchase.
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As of August 24, 2006, Credit Acceptance had 33,362,080 shares outstanding. The
last reported sale price of Credit Acceptance's common stock on the NASDAQ
Global Market on August 25, 2006, which was the last trading day prior to the
commencement of the offer, was $27.87 per share.
Georgeson, Inc. is the Information Agent for the offer and Computershare Trust
Company, N.A. is the Depositary. The Offer to Purchase, Letter of Transmittal
and related documents are being mailed to registered shareholders and will also
be made available for distribution to beneficial owners of Credit Acceptance
common stock. Questions related to the offer and requests for copies of the
Offer to Purchase, the Letter of Transmittal and related documents may be
directed to Georgeson, Inc. at (888) 219-8475.
Neither Credit Acceptance nor its Board of Directors is making any
recommendation whether shareholders should tender or refrain from tendering
their shares or at what purchase price they should choose to tender their
shares.
This press release is for informational purposes only and is not an offer to buy
or the solicitation of an offer to sell any shares of Credit Acceptance's common
stock. The solicitation of offers to buy Credit Acceptance's common stock will
only be made pursuant to the Offer to Purchase and related materials that Credit
Acceptance will be distributing to its shareholders. Shareholders are urged to
read Credit Acceptance's Tender Offer Statement on Schedule TO filed with the
Securities and Exchange Commission in connection with the tender offer, which
includes as exhibits the Offer to Purchase and the related Letter of
Transmittal, as well as any amendments or supplements to the Statement when they
become available, because they contain important information. Each of these
documents has been or will be filed with the SEC, and shareholders may obtain
them free of charge from the SEC at the SEC's Website (http://www.sec.gov/) or
from Georgeson, Inc., the Information Agent for the tender offer, toll free at
(888) 219-8475.
DESCRIPTION OF CREDIT ACCEPTANCE CORPORATION
Since 1972, Credit Acceptance has provided auto loans to consumers, regardless
of their credit history. Our product is offered through a nationwide network of
automobile dealers who benefit from sales of vehicles to consumers who otherwise
could not obtain financing; from repeat and referral sales generated by these
same customers; and from sales to customers responding to advertisements for our
product, but who actually end up qualifying for traditional financing.
Without our product, consumers may be unable to purchase a vehicle or they may
purchase an unreliable one, or they may not have the opportunity to improve
their credit standing. As we report to the three national credit reporting
agencies, a significant number of our customers improve their lives by improving
their credit score and move on to more traditional sources of financing. Credit
Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more
information, visit creditacceptance.com.
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