September 12, 2006
AmeriCredit Corp. announced today its intention to offer, subject to market and other conditions, $250 million principal amount of Convertible Senior Notes due 2011 and $250 million principal amount of Convertible Senior Notes due 2013 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities of 1933, as amended. In certain circumstances, the notes may be converted into cash up to their principal amount, and into shares of AmeriCredit common stock for the conversion value above the principal amount, if any.
The interest rate, conversion rate and other terms of the notes will be determined by negotiations between AmeriCredit and the initial purchasers of the notes. AmeriCredit expects to grant the initial purchasers a 15-day option to purchase up to $25 million principal amount of additional 2011 notes and up to $25 million principal amount of additional 2013 notes, in each case, solely to cover over-allotments.
AmeriCredit plans to use the net proceeds from the offering of the notes for:
The purchase, from affiliates of one or more of the initial purchasers, of convertible note hedges with respect to AmeriCredit's common stock, which are expected to reduce the potential dilution upon conversion of the notes. Concurrently with entering into the convertible note hedges, AmeriCredit will issue warrants to purchase its common stock. In connection with establishing their initial hedges of the convertible note hedge and warrant transactions, AmeriCredit has been advised that the counterparties to such transactions or their respective affiliates expect to enter into various derivative transactions with respect to AmeriCredit's common stock and/or purchase AmeriCredit's common stock in secondary market transactions concurrently with, or shortly after, the pricing of the notes, and may enter into various derivative transactions with respect to AmeriCredit's common stock and/or purchase or sell AmeriCredit's common stock in secondary market transactions following pricing of the notes. If the initial purchasers exercise their option to purchase additional notes, AmeriCredit expects to use a portion of the net proceeds from the sale of the additional notes to enter into additional convertible note hedge transactions. AmeriCredit may also enter into additional warrant transactions, if the over-allotment is exercised.- The repurchase of approximately $200 million of its common stock in privately negotiated transactions concurrently with the offering of the notes.
- General corporate purposes, including repurchasing shares of AmeriCredit common stock in the open market or in privately negotiated transactions from time to time.
We buy AUTO PAPER, sell your buy here pay here AUTO NOTES for cash!!
Call us today Russell Crosby 615-414-6708
No comments:
Post a Comment