Credit Acceptance Corp. Enters Material Definitive Agreement

TL;DR

CAC just signed a big deal, new financial obligation incoming.

AI Summary

On June 17, 2024, Credit Acceptance Corp. entered into a material definitive agreement related to a direct financial obligation. The company, headquartered in Southfield, Michigan, filed an 8-K report detailing this event. Specific details regarding the nature of the agreement and the financial obligation were not fully disclosed in the provided text.

Why It Matters

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

Risk Assessment

Risk Level: medium — Entering into a material definitive agreement and a direct financial obligation can introduce new risks related to the terms, performance, and potential impact on the company's financial health.

Key Players & Entities

• Credit Acceptance Corp. (company) — Registrant
• June 17, 2024 (date) — Date of earliest event reported
• Southfield, Michigan (location) — Principal executive offices location

FAQ

Key Financial Figures

• $66.8 million — facility. As of June 17, 2024, we had $66.8 million outstanding under the revolving secured

Filing Documents

• cacc-20240617.htm (8-K) — 29KB
• cacc_8k20240617rca.htm (EX-4.145) — 1037KB
• cacc_8k20240617pr.htm (EX-99.1) — 7KB
• 0000885550-24-000077.txt ( ) — 1391KB
• cacc-20240617.xsd (EX-101.SCH) — 2KB
• cacc-20240617_lab.xml (EX-101.LAB) — 21KB
• cacc-20240617_pre.xml (EX-101.PRE) — 12KB
• cacc-20240617_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. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On June 17, 2024, Credit Acceptance Corporation (the "Company", "Credit Acceptance", "we", "our", or "us") entered into the Twelfth Amendment to the Sixth Amended and Restated Credit Agreement, dated as of June 17, 2024, among the Company, Comerica Bank and the other banks signatory thereto (collectively, the "Banks") and Comerica Bank as administrative agent for the Banks. The amendment extends the date on which the revolving secured line of credit facility will cease to revolve from June 22, 2026 to June 22, 2027. The interest rate on borrowings under the facility has changed from the Bloomberg Short-Term Bank Yield Index rate plus 187.5 basis points to the Secured Overnight Financing Rate plus 197.5 basis points. There were no other material changes to the terms of the facility. As of June 17, 2024, we had $66.8 million outstanding under the revolving secured line of credit facility. The terms and conditions of this transaction are set forth in the agreement attached hereto as Exhibit 4.145 to this Form 8-K and incorporated herein by reference.

01 Other Events

Item 8.01 Other Events. On June 17, 2024, we issued a press release regarding this transaction. The press release is attached as Exhibit 99.1 to this 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 4.145 Twelfth Amendment to the Sixth Amended and Restated Credit Agreement dated as of June 17, 2024 among the Company, Comerica Bank and the other banks signatory thereto, and Comerica Bank, as administrative agent for the banks. 99.1 Press release dated June 17, 2024. 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

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: June 20, 2024 By: /s/ Douglas W. Busk Douglas W. Busk Chief Treasury Officer