Union Acceptance Corporation Renews Warehouse Facility
INDIANAPOLIS--Sept. 5, 2001--Union Acceptance Corporation ("UAC") today announced that its subsidiary, UAFC Corporation, has renewed its $350 million warehouse facility with Enterprise Funding Corporation, a multiseller conduit administered by Bank of America. This credit facility is insured by MBIA Insurance Corporation, a wholly owned subsidiary of MBIA Inc. . In addition, the Company announced that its subsidiary, UAFC-2 Corporation, has replaced its $200 million insured warehouse facility which expired in August 2001, with a new uninsured warehouse facility with Variable Funding Capital Corporation, administered by First Union Securities.Credit facilities for short-term financing of receivable acquisitions now include:
| -- | $350 million wrapped revolving warehouse facility administered by Bank of America |
| -- | $200 million unwrapped revolving warehouse facility administered by Bank of America |
| -- | $200 million unwrapped revolving warehouse facility administered by First Union Securities |
These sources of financing provide a total of $750 million in available funding for receivable acquisitions. Other sources of liquidity are funds from operations and securitization transactions. The Company also maintains a $15 million unsecured line of credit.
"We are certainly pleased with the strength of our relationships with our bankers and with their commitment to our business," commented John Stainbrook, President and Chief Executive Officer. "Based on our projections, we believe our combined warehouse facilities should be sufficient to accommodate our expected growth opportunities through December 31, 2002."
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 5,600 manufacturer-franchised dealerships in 40 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.
Forward Looking Information
This news release contains forward-looking statements regarding matters such as profitability, delinquency and credit loss trends and estimates, recoveries of repossessed vehicles, receivable acquisitions, adequacy of credit arrangements, and other issues. Readers are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, the difficulty inherent in predicting changes in delinquency and credit loss rates, changes in acquisition volume, general economic conditions that affect consumer loan performance and consumer borrowing practices and other important factors detailed in the Company's April 6, 2001 registration statement on Form S-2 and the Company's annual report on Form 10-K for the fiscal year ended June 30, 2000, both of which were filed with the Securities and Exchange Commission.