SOUTHFIELD, Mich., Feb. 14, 2007 (PRIME NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq:CACC) (the "Company") announced today that it has renewed its $325 million revolving warehouse facility. The maturity date of this facility has been extended to February 13, 2008. Under this facility, as renewed, the Company may contribute dealer loans to a wholly owned special purpose entity and receive 80% of the net book value of the dealer loans in non-recourse financing. Borrowings under the facility bear interest at a floating rate equal to the commercial paper rate plus 65 basis points. As of February 13, 2007, the Company had $197.5 million outstanding on the facility.
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.