Current Price – $124.97
Offer Price – $125.54
Upside – 0.5% or $56
Expiration date – October 20, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Summary:
Credit Acceptance Corporation, a Michigan corporation, is offering to purchase up to 995,698 shares of its common stock, par value $0.01 per share, at a price of $125.54 per share, net to the seller in cash. 995,698 shares represents 4.6% of our outstanding common stock as of September 1, 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 995,698 shares in the tender offer, approximately $125 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 and/or by obtaining a cash distribution from one or more of CAC Warehouse Funding Corporation II (“Warehouse Funding II”), CAC Warehouse Funding LLC IV (“Warehouse Funding IV”) and CAC Warehouse Funding LLC V (“Warehouse Funding V”).