Credit Acceptance Corp. Files 8-K on Financial Obligation
Ticker: CACC · Form: 8-K · Filed: 2024-10-02T00:00:00.000Z
Sentiment: neutral
Topics: material-definitive-agreement, financial-obligation, 8-k
TL;DR
Credit Acceptance Corp. just filed an 8-K on a new financial obligation - details TBD.
AI Summary
On September 26, 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 does not specify the exact nature or dollar amount of the obligation.
Why It Matters
This filing indicates a new or modified financial commitment for Credit Acceptance Corp., which could impact its financial structure and future obligations.
Risk Assessment
Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, suggesting potential financial risk or opportunity that is not yet fully disclosed.
Key Numbers
- 000-20202 — SEC File Number (Identifies the company's filing history with the SEC.)
- 38-1999511 — IRS Employer Identification No. (Company's tax identification number.)
Key Players & Entities
- Credit Acceptance Corp. (company) — Registrant
- September 26, 2024 (date) — Date of earliest event reported
- Michigan (location) — State of incorporation
- 25505 West Twelve Mile Road (address) — Principal executive offices
- Southfield, Michigan (location) — City and State of principal executive offices
FAQ
What specific material definitive agreement did Credit Acceptance Corp. enter into on September 26, 2024?
The filing states that Credit Acceptance Corp. entered into a material definitive agreement, but the specific details of the agreement are not provided in the provided text.
What is the nature of the direct financial obligation or off-balance sheet arrangement?
The filing indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement, but the exact nature and terms are not detailed in the provided text.
What is the dollar amount associated with this financial obligation?
The provided text does not specify any dollar amounts related to the financial obligation.
Where are Credit Acceptance Corp.'s principal executive offices located?
Credit Acceptance Corp.'s principal executive offices are located at 25505 West Twelve Mile Road, Southfield, Michigan 48034-8339.
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: 1,629 words · 7 min read · ~5 pages · Grade level 11.8 · Accepted 2024-10-02 16:03:26
Key Financial Figures
- $600.0 million — ", "we", "our", or "us") entered into a $600.0 million asset-backed non-recourse secured finan
- $750.2 million — r loans having a value of approximately $750.2 million to a wholly-owned special purpose entit
Filing Documents
- cacc-20240926.htm (8-K) — 51KB
- cacc_8k20240926ia.htm (EX-4.158) — 742KB
- cacc_8k20240926bsa.htm (EX-4.159) — 165KB
- cacc_8k20240926aria.htm (EX-4.160) — 263KB
- cacc_8k20240926sca.htm (EX-4.161) — 160KB
- cacc_8k20240926arta.htm (EX-4.162) — 466KB
- cacc_8k20240926ssa.htm (EX-4.163) — 954KB
- cacc_8k20240926pr.htm (EX-99.1) — 23KB
- 0000885550-24-000113.txt ( ) — 3397KB
- cacc-20240926.xsd (EX-101.SCH) — 2KB
- cacc-20240926_lab.xml (EX-101.LAB) — 21KB
- cacc-20240926_pre.xml (EX-101.PRE) — 12KB
- cacc-20240926_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 26, 2024, Credit Acceptance Corporation (the "Company", "Credit Acceptance", "we", "our", or "us") entered into a $600.0 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, we conveyed consumer loans having a value of approximately $750.2 million to a wholly-owned special purpose entity, Credit Acceptance Funding LLC 2024-3 ("Funding 2024-3"), which transferred those consumer loans to a trust, which issued three classes of notes: Note Class Amount Average Life Price Interest Rate A $ 316,464,000 2.45 years 99.98629 % 4.68 % B $ 121,668,000 3.08 years 99.97303 % 4.85 % C $ 161,868,000 3.53 years 99.98737 % 5.39 % The Financing will: have an expected average annualized cost of approximately 5.2% 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 re
01 Other Events
Item 8.01 Other Events. On September 26, 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 4.158 Indenture, dated as of September 26, 2024, between Credit Acceptance Auto Loan Trust 2024-3 and Computershare Trust Company, N.A. 4.159 Backup Servicing Agreement, dated as of September 26, 2024, among the Company, Credit Acceptance Funding LLC 2024-3, Credit Acceptance Auto Loan Trust 2024-3, and Computershare Trust Company, N.A. 4.160 Amended and Restated Intercreditor Agreement dated September 26, 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 2024-3, 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 2024-3, 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, Bank of Montreal, as agent, Fifth Third Bank, National Association, as agent, Flagstar Bank, National Association, as agent, Citizens Bank, N.A., as agent, and C
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: October 2, 2024 By: /s/ Douglas W. Busk Douglas W. Busk Chief Treasury Officer