Southfield, Michigan, Oct. 24, 2014 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (NASDAQ: CACC) (referred to as the "Company", "Credit Acceptance", "we", "our", or "us") announced today the final results of our tender offer, which expired at 5:00 p.m., New York City time, on October 20, 2014. We commenced the tender offer on September 19, 2014 to purchase up to 995,698 shares of our outstanding common stock at a price of $125.54 per share, net to the seller in cash, without interest. Based on the final count by Computershare Trust Company, N.A., the Depositary for the tender offer, 8,891,295 shares of common stock were properly tendered and not properly withdrawn. Because more than the maximum 995,698 shares were tendered, we have accepted for purchase only a prorated portion of the shares tendered by each tendering shareholder, other than odd lot shareholders, as described in our Offer to Purchase. The proration factor used by us in accepting for purchase tendered shares was approximately 10.8%.
We will promptly pay for 995,698 tendered shares of our common stock at a price of $125.54 per share, net to the seller in cash, without interest, at a total cost of approximately $125.0 million which includes approximately 430,968 shares tendered by Donald Foss, our Chairman of the board. We are funding the purchase of our securities in the tender offer with available cash and by borrowing under our revolving secured line of credit facility and warehouse facilities.
As a result of the completion of the tender offer, we have approximately 20.6 million shares of common stock outstanding. Georgeson, Inc. was the Information Agent for the tender offer.
Description of Credit Acceptance Corporation
Since 1972, Credit Acceptance has offered automobile dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. Our financing programs are 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 financing programs, consumers are often unable to purchase a vehicle or they purchase an unreliable one. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide a significant number of our consumers with an opportunity to 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.