EXHIBIT 99.1
SILVER TRIANGLE BUILDING
25505 WEST TWELVE MILE ROAD, SUITE 3000
SOUTHFIELD, MI 48034-8339
(248) 353-2700
CREDITACCEPTANCE.COM
NEWS RELEASE
FOR IMMEDIATE RELEASE
DATE: NOVEMBER 21, 2006
INVESTOR RELATIONS: DOUGLAS W. BUSK
TREASURER
(248) 353-2700 EXT. 4432
IR@CREDITACCEPTANCE.COM
NASDAQ: CACC
CREDIT ACCEPTANCE ANNOUNCES COMPLETION OF
$100 MILLION ASSET-BACKED FINANCING
SOUTHFIELD, MICHIGAN - NOVEMBER 21, 2006 - CREDIT ACCEPTANCE CORPORATION
(NASDAQ: CACC) (the "Company") announced today the completion of a $100.0
million asset-backed non-recourse secured financing, its fourteenth asset-backed
financing. Pursuant to this transaction, the Company contributed dealer loans
having a net book value of approximately $125.6 million to a wholly owned
special purpose entity which transferred the dealer loans to a Trust, which
issued $100.0 million in notes to qualified institutional investors. The
proceeds will be used by the Company to repay outstanding indebtedness. The
notes bear interest at a fixed rate of 5.38%. The expected annualized cost of
the financing, including underwriter's fees, insurance premiums and other costs,
is approximately 7.4%. It is anticipated that the notes will be repaid in
approximately 22 months.
This transaction represents the Company's fourth sale of notes to qualified
institutional investors under SEC Rule 144A. Radian Asset Assurance issued the
primary financial insurance policy in connection with the transaction, while XL
Capital Assurance issued a backup insurance policy. The policies guarantee the
timely payment of interest and ultimate repayment of principal on the final
scheduled distribution date. The notes are rated "Aaa" by Moody's Investor
Services and "AAA" by Standard & Poor's Rating Services.
The Company will receive 6.0% of the cash flows related to the underlying
consumer loans to cover servicing expenses. The remaining 94.0%, less amounts
due to dealer-partners for payments of dealer holdback, will be used to pay
principal and interest on the notes as well as the ongoing costs of the
financing. Using a unique financing structure, the Company's contracted
relationship with its dealer-partners remains unaffected with the
dealer-partners' rights to future payments of dealer holdback preserved.
The notes have not been and will not be registered under the Securities Act of
1933 and may not be offered or sold in the United States absent registration or
an applicable exemption from registration requirements. This news release does
not and will not constitute an offer to sell or the solicitation of an offer to
buy the notes. This news release is being issued pursuant to and in accordance
with Rule 135c under the Securities Act of 1933.
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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