Union Acceptance Corporation Enhances Liquidity Position with $15 Million Working Capital Line
9 June 2000
Union Acceptance Corporation Enhances Liquidity Position with $15 Million Working Capital Line
INDIANAPOLIS - Union Acceptance Corporation today announced that it has closed a $15 million working capital line of credit with Bank of America, N.A. The line of credit is unsecured and is available to fund short-term cash flow needs of the Company.John Stainbrook, President and Chief Executive Officer commented, "We are pleased that we were able to establish an additional source of liquidity. Strengthening our liquidity position is always a priority, and this facility certainly puts us in a stronger position to handle any unforeseen short-term needs."
UAC utilizes a wrapped revolving warehouse facility with a capacity of $500 million and a recently closed unwrapped revolving warehouse facility with a capacity of $200 million to fund the purchase of receivables. Other sources of liquidity include a $375 million commercial paper conduit, senior and senior subordinated notes, securitization transactions and funds from operations.
Corporate Description
UAC is one of the nation's largest independent, indirect automobile finance companies. The Company's primary business is acquiring, securitizing and servicing prime retail installment sales contracts. These contracts are originated by dealerships affiliated with major domestic and foreign automobile manufacturers. The Company is focused on the upper-end of the credit quality spectrum. Union Acceptance Corporation commenced business in 1986 and currently acquires receivables from over 4,600 manufacturer-franchised dealerships in 38 states. By using state-of-the-art technology in a highly centralized underwriting and servicing environment, Union Acceptance Corporation enjoys one of the lowest cost operating structures in the independent prime automobile finance industry.
