Asset Acceptance Capital Corp. to Pursue New Senior Secured Credit Facilities

Asset Acceptance Capital Corp. (NASDAQ: AACC), a leading purchaser and collector of charged-off consumer debt, announced last week that it has engaged JP Morgan Securities LLC to act as sole lead arranger and bookrunner to arrange a syndicate of lenders to fund new senior secured loans to replace its existing credit facilities.

The proposed transaction, comprised of a combination of revolving credit and term loan B facilities, will refinance the company’s existing $233.4 million senior secured debt. The company’s existing $100.0 million revolving credit facility will mature in June 2012 and the $133.4 million remaining balance on its term loan B will mature on June 2013.

Asset Acceptance expects the new facilities, once completed, to provide increased capacity and enhanced flexibility to help fund ongoing growth of the business.

Rion Needs, President and CEO, commented, “Given recent improvement in the credit markets, we saw an opportunity to proactively refinance our existing credit facilities to further increase our financial strength and flexibility. As we continue to execute our long-term growth strategy, which includes expanding our purchasing and collection capabilities, the new loans, along with our improving free cash flow, should provide additional working capital financing and allow for more opportunistic purchasing to grow our business.”

For more than 45 years, Asset Acceptance has provided credit originators, such as credit card issuers, consumer finance companies, retail merchants, utilities and others an efficient alternative in recovering defaulted consumer debt.