Asset Acceptance Enters Into $250 million Credit Agreement

Asset Acceptance Capital Corp. (Nasdaq: AACC), a leading purchaser and collector of charged-off consumer debt, announced Wednesday that it has entered into an expanded credit agreement containing a $100 million revolving credit facility and a $150 million term loan facility. As a result, the company has satisfied the financing condition with respect to the company’s modified "Dutch auction" tender offer previously announced.

As with the company’s former revolving credit facility, the new $100 million revolving credit facility will be used to supplement cash flows available for the acquisition of purchased receivables, in addition to other general corporate purposes. Furthermore, the new facility includes an accordion loan feature which permits a $25 million credit limit extension, should the Asset Acceptance require additional access to capital to support future operations. The new revolving credit facility has a five-year-term expiring June 12, 2012.

In addition to the new revolving credit facility, the expanded credit agreement also contains a $150 million term loan facility, which the company will use to fund a previously announced plan to return $150 million to shareholders.

The new term loan facility will mature on June 12, 2013 and will amortize $1.5 million per year (in quarterly installments beginning on or about September 30, 2007), with any remaining principal due at final maturity.

"By entering into this new term loan facility that will be used to provide a significant, direct return of cash to our shareholders, we believe we have improved our capital structure. At the same time, retaining and extending our $100 million revolving credit facility gives us continued access to liquidity to take advantage of opportunities to purchase paper or invest in other strategic alternatives that may arise," said Brad Bradley, chairman, president and CEO of Asset Acceptance Capital Corp. "We are pleased with the interest from lenders in the market and as a result, the favorable financing terms we obtained in this new credit agreement. We remain committed to managing shareholder capital in a prudent and disciplined manner."

JPMorgan Chase Bank acted as the lead lender participating in the expanded credit agreement.