Credit Acceptance Corp. Enters Material Definitive Agreement

Ticker: CACC · Form: 8-K · Filed: 2024-04-03T00:00:00.000Z

Sentiment: neutral

Topics: material-agreement, financial-obligation

TL;DR

Credit Acceptance Corp. just signed a big deal, filing an 8-K on March 28th.

AI Summary

On March 28, 2024, Credit Acceptance Corp. entered into a material definitive agreement related to a direct financial obligation. The company, headquartered in Southfield, Michigan, filed this 8-K report on April 3, 2024, detailing the event.

Why It Matters

This filing indicates a significant financial commitment or obligation for Credit Acceptance Corp., which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements can introduce new financial obligations or risks that require careful monitoring.

Key Players & Entities

Credit Acceptance Corp. (company) — Registrant
March 28, 2024 (date) — Date of earliest event reported
April 3, 2024 (date) — Date of report filing
Southfield, Michigan (location) — Principal executive offices

FAQ

What type of material definitive agreement did Credit Acceptance Corp. enter into?

The filing states that the agreement is related to a 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant'.

When was the earliest event reported in this 8-K filing?

The earliest event reported was on March 28, 2024.

When was this 8-K form filed with the SEC?

This 8-K form was filed on April 3, 2024.

Where is Credit Acceptance Corp. headquartered?

Credit Acceptance Corp. is headquartered at 25505 West Twelve Mile Road, Southfield, Michigan.

What is the SIC code for Credit Acceptance Corp.?

The Standard Industrial Classification (SIC) code for Credit Acceptance Corp. is 6141, which corresponds to Personal Credit Institutions.

Filing Stats: 1,617 words · 6 min read · ~5 pages · Grade level 11.6 · Accepted 2024-04-03 16:08:31

Key Financial Figures

$500.0 million — ", "we", "our", or "us") entered into a $500.0 million asset-backed non-recourse secured finan
$625.2 million — r loans having a value of approximately $625.2 million to a wholly owned special purpose entit

Filing Documents

cacc-20240328.htm (8-K) — 52KB
cacc_8k20240328ia.htm (EX-4.139) — 774KB
cacc_8k20240328bsa.htm (EX-4.140) — 195KB
cacc_8k20240328aria.htm (EX-4.141) — 247KB
cacc_8k20240328sca.htm (EX-4.142) — 160KB
cacc_8k20240328arta.htm (EX-4.143) — 500KB
cacc_8k20240328ssa.htm (EX-4.144) — 1029KB
cacc_8k20240328pr.htm (EX-99.1) — 24KB
0000885550-24-000049.txt ( ) — 3561KB
cacc-20240328.xsd (EX-101.SCH) — 2KB
cacc-20240328_lab.xml (EX-101.LAB) — 21KB
cacc-20240328_pre.xml (EX-101.PRE) — 12KB
cacc-20240328_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. The information set forth below under Item 2.03 is hereby incorporated by reference into this Item 1.01.

03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On March 28, 2024, Credit Acceptance Corporation (the "Company", "Credit Acceptance", "we", "our", or "us") entered into a $500.0 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, we conveyed consumer loans having a value of approximately $625.2 million to a wholly owned special purpose entity, Credit Acceptance Funding LLC 2024-1 ("Funding 2024-1"), which transferred those consumer loans to a trust, which will issue three classes of notes: Note Class Amount Average Life Price Interest Rate A $ 298,175,000 2.35 years 99.98022 % 5.68 % B $ 64,412,000 2.82 years 99.99341 % 6.03 % C $ 137,413,000 3.12 years 99.97725 % 6.71 % The Financing will: have an expected average annualized cost of approximately 6.4% including the initial purchasers' fees and other costs; revolve for 24 months, after which it will amortize based upon the cash flows on the conveyed loans; and be used by us to repay outstanding indebtedness and for general corporate purposes. We will receive 4.0% of the cash flows related to the underlying consumer loans as a servicing fee to cover our servicing expenses. The remaining 96.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest on the notes as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with dealers and to preserve the dealers' rights to future payments of dealer holdback. The notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This Current Report on Form 8-K does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes. The parties to th

01 Other Events

Item 8.01 Other Events. On March 28, 2024, we issued a press release regarding the Financing. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No . Description 4.139 Indenture, dated as of March 28, 2024, between Credit Acceptance Auto Loan Trust 2024-1 and Computershare Trust Company, N.A. 4.140 Backup Servicing Agreement, dated as of March 28, 2024, among the Company, Credit Acceptance Funding LLC 2024-1, Credit Acceptance Auto Loan Trust 2024-1, and Computershare Trust Company, N.A. 4.141 Amended and Restated Intercreditor Agreement dated March 28, 2024, among the Company, CAC Warehouse Funding LLC II, CAC Warehouse Funding LLC IV, CAC Warehouse Funding LLC V, CAC Warehouse Funding LLC VI, CAC Warehouse Funding LLC VIII, Credit Acceptance Funding LLC 2024-1,Credit Acceptance Funding LLC 2024-A, Credit Acceptance Funding LLC 2023-5, Credit Acceptance Funding LLC 2023-A, Credit Acceptance Funding LLC 2023-3, Credit Acceptance Funding LLC 2023-2, Credit Acceptance Funding LLC 2023-1, Credit Acceptance Funding LLC 2022-3, Credit Acceptance Funding LLC 2022-2, Credit Acceptance Funding LLC 2022-1, Credit Acceptance Funding LLC 2021-4, Credit Acceptance Funding LLC 2021-3, Credit Acceptance Funding LLC 2021-2, Credit Acceptance Funding LLC 2021-1, Credit Acceptance Funding LLC 2019-2, Credit Acceptance Auto Loan Trust 2024-1, Credit Acceptance Auto Loan Trust 2024-A, Credit Acceptance Auto Loan Trust 2023-5, Credit Acceptance Auto Loan Trust 2023-3, Credit Acceptance Auto Loan Trust 2023-2, Credit Acceptance Auto Loan Trust 2023-1, Credit Acceptance Auto Loan Trust 2022-3, Credit Acceptance Auto Loan Trust 2022-1, Credit Acceptance Auto Loan Trust 2021-4, Credit Acceptance Auto Loan Trust 2021-3, Credit Acceptance Auto Loan Trust 2021-2, Computershare Trust Company, N.A., as trustee, Fifth Third Bank, National Association, Bank of Montreal, Flagstar Bank, National Association, as agent, as agent, Citizens Bank, N.A., as agent, and Comerica Bank, as agent. 4.142 Sale and Contribution Agreement, dated as of March 28, 2024, betwe

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CREDIT ACCEPTANCE CORPORATION Date: April 3, 2024 By: /s/ Douglas W. Busk Douglas W. Busk Chief Treasury Officer