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Credit Acceptance Announces Secondary Offering Price

By Eric Volkman – Apr 12, 2013 at 10:00PM

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A combined 1.5 million shares of the company's stock are to hit the market at $105 apiece.

Credit Acceptance (CACC 1.12%) will see big blocks of its shares change hands over the next few days. The company has specified the pricing of a previously announced underwritten public secondary stock common offering of $105.00 per share. Trusts associated with the firm's founder Donald Foss, in combination with Karol Foss and people and entities connected with Prescott General Partners, aim to sell a combined 1.5 million of their shares. Additionally, the underwriters will have a 30-day option to buy up to an extra 225,000 shares.

Credit Acceptance anticipates that the offering will close on April 17. In the press release announcing the pricing, the company stressed that it will not receive any monies from the issue.

The joint book-running managers of the offering are Bank of America unit Merrill Lynch and Credit Suisse's Securities division.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Credit Acceptance
CACC
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