Credit Acceptance Corp. Files 8-K on Material Definitive Agreement

TL;DR

Credit Acceptance Corp. just signed a big deal, filing an 8-K on June 20th.

AI Summary

On June 20, 2024, Credit Acceptance Corp. entered into a material definitive agreement related to a financial obligation. The company, incorporated in Michigan, filed an 8-K report detailing this event. The filing also includes other events and financial statements/exhibits.

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 — Material definitive agreements can introduce new financial risks or opportunities, requiring further analysis of the specific terms.

Key Players & Entities

• Credit Acceptance Corp. (company) — Registrant
• June 20, 2024 (date) — Date of earliest event reported
• Michigan (location) — State of incorporation

FAQ

Key Financial Figures

• $550.0 million — ", "we", "our", or "us") entered into a $550.0 million non-recourse secured financing (the "Fi
• $687.7 million — r loans having a value of approximately $687.7 million to a wholly-owned special purpose entit
• $200.0 million — which we refer as Term ABS 2022-2 from $200.0 million to $300.0 million and extended the date
• $300.0 million — Term ABS 2022-2 from $200.0 million to $300.0 million and extended the date on which it will

Filing Documents

• cacc-20240620.htm (8-K) — 55KB
• cacc_8k20240620ia.htm (EX-4.146) — 749KB
• cacc_8k20240620bsa.htm (EX-4.147) — 178KB
• cacc_8k20240620aria.htm (EX-4.148) — 251KB
• cacc_8k20240620sca.htm (EX-4.149) — 161KB
• cacc_8k20240620arta.htm (EX-4.150) — 466KB
• cacc_8k20240620ssa.htm (EX-4.151) — 967KB
• cacc_8k20240620lsa.htm (EX-4.152) — 1169KB
• cacc_8k20240620pr.htm (EX-99.1) — 20KB
• cacc_8k20240620pr2.htm (EX-99.2) — 7KB
• 0000885550-24-000079.txt ( ) — 4786KB
• cacc-20240620.xsd (EX-101.SCH) — 2KB
• cacc-20240620_lab.xml (EX-101.LAB) — 21KB
• cacc-20240620_pre.xml (EX-101.PRE) — 12KB
• cacc-20240620_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 20, 2024, Credit Acceptance Corporation (the "Company", "Credit Acceptance", "we", "our", or "us") entered into a $550.0 million non-recourse secured financing (the "Financing"). Pursuant to this transaction, we conveyed consumer loans having a value of approximately $687.7 million to a wholly-owned special purpose entity, Credit Acceptance Funding LLC 2024-2 ("Funding 2024-2"), which transferred the loans to a trust, which will issue three classes of notes: Note Class Amount Average Life Price Interest Rate A $ 272,440,000 2.50 years 99.99846 % 5.95 % B $ 110,290,000 3.16 years 99.97870 % 6.11 % C $ 167,270,000 3.67 years 99.97885 % 6.70 % The Financing will: have an expected average annualized cost of approximately 6.5% 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

01 Other Events

Item 8.01 Other Events. On June 20, 2024 and June 21, 2024, we issued press releases regarding these transactions. The press releases are attached as Exhibit 99.1 and 99.2 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 4.146 Indenture, dated as of June 20, 2024, between Credit Acceptance Auto Loan Trust 2024-2 and Computershare Trust Company, N.A. 4.147 Backup Servicing Agreement, dated as of June 20, 2024, among the Company, Credit Acceptance Funding LLC 2024-2, Credit Acceptance Auto Loan Trust 2024-2, and Computershare Trust Company, N.A. 4.148 Amended and Restated Intercreditor Agreement dated June 20, 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 2024-2, 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 2021-1, Credit Acceptance Funding LLC 2019-2, Credit Acceptance Auto Loan Trust 2024-2, 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, 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. 4.149 Sale and Contribution Agreement, dated as of June 20, 2024, between the

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 26, 2024 By: /s/ Douglas W. Busk Douglas W. Busk Chief Treasury Officer