Credit Acceptance Corp. Enters New Credit Facility

TL;DR

Credit Acceptance Corp. just signed a new credit deal, getting more cash on hand.

AI Summary

On September 19, 2024, Credit Acceptance Corp. entered into a material definitive agreement, specifically a new credit facility. This agreement creates a direct financial obligation for the company, impacting its financial structure. The filing also includes other events and financial statements/exhibits.

Why It Matters

This new credit facility provides Credit Acceptance Corp. with additional financial resources, potentially impacting its ability to fund operations and growth.

Risk Assessment

Risk Level: medium — Entering into new financial obligations can introduce risks related to debt management and interest rate fluctuations.

Key Players & Entities

• Credit Acceptance Corp. (company) — Registrant
• September 19, 2024 (date) — Date of earliest event reported
• 25505 West Twelve Mile Road (location) — Principal executive offices address
• Southfield, Michigan (location) — Principal executive offices city and state

FAQ

Key Financial Figures

• $500.0 million — nk, National Association, extending the $500.0 million asset-backed non-recourse secured finan
• $400.0 million — he amount of Warehouse Facility II from $400.0 million to $500.0 million. In addition, the int
• $201.0 million — . 3. As of September 19, 2024, we had $201.0 million outstanding under Warehouse Facility II

Filing Documents

• cacc-20240919.htm (8-K) — 33KB
• cacc_8k20240919lsax2019-2.htm (EX-4.156) — 938KB
• cacc_8k20240919lsaxwells.htm (EX-4.157) — 38KB
• cacc_8k20240919pr.htm (EX-99.1) — 9KB
• 0000885550-24-000111.txt ( ) — 1301KB
• cacc-20240919.xsd (EX-101.SCH) — 2KB
• cacc-20240919_lab.xml (EX-101.LAB) — 21KB
• cacc-20240919_pre.xml (EX-101.PRE) — 12KB
• cacc-20240919_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 September 19, 2024, Credit Acceptance Corporation (the "Company", "Credit Acceptance", "we", "our", or "us") and Credit Acceptance Funding LLC 2019-2 entered into the Amendment No. 3 to Loan and Security Agreement (the "Amendment") with Wells Fargo Bank, National Association, extending the $500.0 million asset-backed non-recourse secured financing that we entered into on August 28, 2019 and to which we refer as Term ABS 2019-2. Under the Amendment, the date on which Term ABS 2019-2 will cease to revolve has been extended from August 15, 2025 to September 15, 2026. The Amendment also increased the interest rate applicable to Term ABS 2019-2 from 5.15% to 5.43%. There were no other material changes to the terms of Term ABS 2019-2 in connection with the Amendment. The above description of the Amendment does not purport to be complete and is qualified in its entirety by the Amendment, a copy of which is attached as Exhibit 4.156 to this Form 8-K and incorporated herein by reference. On September 19, 2024, Credit Acceptance and CAC Warehouse Funding LLC II entered into the Amendment No. 3 to the Seventh Amended and Restated Loan and Security Agreement ("Amendment No. 3") with Wells Fargo Bank, National Association and Computershare Trust Company, N.A., amending the Seventh Amended and Restated Loan and Security Agreement dated as of April 30, 2021, as previously amended (the "Loan and Security Agreement"). Amendment No. 3 extended the scheduled amortization date of the facility under the Loan and Security Agreement ("Warehouse Facility II") from April 30, 2026 to September 20, 2027 and increased the amount of Warehouse Facility II from $400.0 million to $500.0 million. In additio

01 Other Events

Item 8.01 Other Events. On September 19, 2024, we issued a press release regarding the Amendment and Amendment No. 3. 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 4.156 Amendment No. 3 to Loan and Security Agreement, dated as of September 19, 2024, among the Company, Credit Acceptance Funding LLC 2019-2, and Wells Fargo Bank, National Association. 4.157 Amendment No. 3 to the Seventh Amended and Restated Loan and Security Agreement, dated as of September 19, 2024, among CAC Warehouse Funding LLC II, the Company, Wells Fargo Bank, National Association, and Computershare Trust Company, N.A. 99.1 Press release dated September 19, 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: September 24, 2024 By: /s/ Douglas W. Busk Douglas W. Busk Chief Treasury Officer