FORT WORTH, Texas, Mar 09, 2009 (BUSINESS WIRE) -- AMERICREDIT CORP. (NYSE: ACF) today announced the amendment and
extension of its master warehouse credit facility. The amendment, which
was approved by all ten active lenders in the facility, reduces the size
of the facility to $1.11 billion from $2.25 billion, and extends the
revolving period to March 2010 from October 2009. The Company also
amended certain covenants under the facility, including:
Increasing the maximum rolling six-month annualized portfolio net loss
ratio to 10.0% through October 2009, 12.0% through December 2009,
12.25% through March 2010 and 12.0% thereafter;
Removing the 364-day aging limitation on pledged receivables; and
Lowering the minimum interest coverage requirement to 1.05X earnings
before interest, taxes, depreciation and amortization, except for the
September 2009, December 2009 and March 2010 quarters, which will be
In conjunction with the amendment, the advance rate on the master
warehouse facility will immediately decline from approximately 85% to
approximately 80% and will gradually decrease to approximately 68% by
February 2010. The fully drawn cost of funds will increase by
approximately 700 basis points.
Additionally, AmeriCredit amended the covenant related to the rolling
six-month annualized portfolio net loss ratio included in its $750
million medium term note facility, which enters an amortization period
in October 2009, to levels consistent with changes in the master
warehouse credit facility. Subsequent to these amendments, the Company
is in compliance with all warehouse covenants.
AmeriCredit Corp. is a leading independent automobile finance company
that provides financing solutions indirectly through auto dealers across
the United States. AmeriCredit has approximately one million customers
and $13 billion in auto receivables. The Company was founded in 1992 and
is headquartered in Fort Worth, Texas. For more information, visit www.americredit.com.
SOURCE: AmeriCredit Corp.
Caitlin DeYoung, 817-302-7394