Credit Acceptance Announces Results of Final Tender Offer

July 09, 2012

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SOUTHFIELD, Mich. — Credit Acceptance Corp. recently revealed the final results of its tender offer, which expired on June 29.

Officials explained they commenced the tender offer back on June 1 to purchase up to 1 million shares of their outstanding common stock at a price of $84.45 per share, net to the seller in cash, without interest.

Based on the final count by Computershare Trust Company, the depositary for the tender offer, Credit Acceptance learned 4,765,781 shares of common stock were properly tendered and not properly withdrawn.

"Because more than the maximum 1,000,000 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," company officials said.

"The proration factor used by us in accepting for purchase tendered shares was approximately 20.5 percent," they continued..

"We will promptly pay for 1,000,000 tendered shares of our common stock at a price of $84.45 per share, net to the seller in cash, without interest, at a total cost of approximately $84.5 million, which includes approximately 37,576 shares tendered by Scott Vassalluzzo, one of our directors and a managing member of Prescott General Partners LLC and approximately 519,447 shares tendered by Prescott General Partners LLC," Credit Acceptance officials went on to say.

"We are financing the purchase of our securities in the tender offer by borrowing under our revolving secured line of credit facility," they added.

As a result of the completion of the tender offer, Credit Acceptance calculated that it has approximately 24.5 million shares of common stock outstanding.

Officials noted Georgeson was the information agent for the tender offer.