Current Price – $137.41
Offer Price – $133.35
Upside – no upside currently
Expiration date – March 26, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Credit Acceptance Corporation, a Michigan corporation , is offering to purchase up to 637,420 shares of its common stock, par value $0.01 per share, at a price of $133.35 per share, net to the seller in cash. 637,420 shares represents 2.8% of our outstanding common stock as of February 15, 2014
No proration for Odd Lot holders:
We will purchase shares:
– first, from all holders of “odd lots” of less than 100 shares who properly tender all of their shares and do not properly withdraw them before the expiration date;
second, after purchasing the shares from the “odd lot” holders, from all other shareholders who properly tender shares and who do not properly withdraw them before the expiration date, on a pro rata basis, subject to the conditional tender provisions described in Section 6, with appropriate adjustments to avoid purchases of fractional shares until we have purchased 915,750 shares.
Source of Funds:
Assuming CA purchases 637,420 shares in the tender offer, approximately $85 million will be required to purchase such shares. CA anticipates that it will obtain all of the funds necessary to purchase shares tendered in the tender offer, and to pay related fees and expenses, by borrowing under its $235.0 million revolving secured line of credit facility.