Credit Acceptance Corporation announced that it has extended the maturity of its credit facility with Comerica Bank as administrative agent and collateral agent for a syndicate of banks from June 22, 2014 to June 22, 2015 and increased the amount of the facility from $205 million to $235 million.
The interest rate on borrowings under the facility has also been decreased from the prime rate plus 1.25% or the LIBOR plus 2.25%, at our option, to the prime rate plus 0.875% or the LIBOR rate 1.875%, at our option. There were no other material changes to the terms of the facility.
The credit facility continues to be secured by a lien on most of the company's assets. As of June 15, 2012 it had $8 million outstanding under the facility.
Since 1972, Credit Acceptance has offered automobile dealers a financing program that enables them to sell vehicles to consumers, regardless of their credit history.