By Paul A. Harris
Portland, Ore., Jan. 16 - Credit Acceptance Corp. priced a $300 million issue of seven-year senior notes (B1/BB) at par to yield 6 1/8% on Thursday, according to a syndicate source.
The yield printed in the middle of the 6% to 6¼% yield talk.
Wells Fargo Securities LLC was the left bookrunner. Credit Suisse Securities (USA) LLC and BMO Securities were joint bookrunners.
Proceeds will be used to refinance debt.
The issuer is a Southfield, Mich.-based independent auto finance company focused on serving consumers regardless of their credit history.
| Issuer: | Credit Acceptance Corp.
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, BMO Securities
|
| Co-managers: | Comerica Securities Inc., Fifth Third Securities Inc., J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Coupon: | 6 1/8%
|
| Price: | Par
|
| Yield: | 6 1/8%
|
| Spread: | 384 bps
|
| First call: | Feb. 15, 2017 at 103.063
|
| Trade date: | Jan. 16
|
| Settlement date: | Jan. 22
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6% to 6¼%
|
| Marketing: | Quick to market
|
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