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

TL;DR

Credit Acceptance Corp. just filed an 8-K for a material definitive agreement - big financial move incoming.

AI Summary

On December 20, 2024, Credit Acceptance Corp. entered into a material definitive agreement related to a direct financial obligation. The company, incorporated in Michigan with its principal executive offices at 25505 West Twelve Mile Road, Southfield, Michigan, filed this 8-K report to disclose this 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 — Material definitive agreements can introduce new financial obligations or risks that may affect the company's performance.

Key Players & Entities

• Credit Acceptance Corp. (company) — Registrant
• December 20, 2024 (date) — Date of earliest event reported
• 25505 West Twelve Mile Road, Southfield, Michigan (location) — Principal executive offices

FAQ

Key Financial Figures

• $300.0 million — ", "we", "our", or "us") entered into a $300.0 million asset-backed non-recourse secured finan
• $375.1 million — r loans having a value of approximately $375.1 million to a wholly owned special purpose entit

Filing Documents

• cacc-20241220.htm (8-K) — 43KB
• cacc_8k20241220lsa.htm (EX-4.166) — 1104KB
• cacc_8k20241220bsa.htm (EX-4.167) — 163KB
• cacc_8k20241220aria.htm (EX-4.168) — 258KB
• cacc_8k20241220sca.htm (EX-4.169) — 160KB
• cacc_8k20241220pr.htm (EX-99.1) — 17KB
• 0000885550-24-000147.txt ( ) — 2115KB
• cacc-20241220.xsd (EX-101.SCH) — 2KB
• cacc-20241220_lab.xml (EX-101.LAB) — 21KB
• cacc-20241220_pre.xml (EX-101.PRE) — 12KB
• cacc-20241220_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 December 20, 2024, Credit Acceptance Corporation (the "Company", "Credit Acceptance", "we", "our", or "us") entered into a $300.0 million asset-backed non-recourse secured financing (the "Financing"). Pursuant to this transaction, we conveyed consumer loans having a value of approximately $375.1 million to a wholly owned special purpose entity, Credit Acceptance Funding LLC 2024-B ("Funding 2024-B"), that pledged the loans to institutional lenders under a loan and security agreement. We issued three classes of notes: Note Class Amount Interest Rate A $ 139,220,000 5.79 % B $ 62,180,000 6.03 % C $ 98,600,000 6.67 % The Financing will: have an expected average annualized cost of approximately 6.3% including upfront fees and other costs; revolve for 36 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 to cover servicing expenses. The remaining 96.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest to the institutional lenders 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 Financing provides for certain events, referred to as "Termination Events", including nonpayment, misrepresentation, breach of covenants, bankruptcy and failure to maintain certain financial ratios and results, including in respect of the performance of the pledged loans. It is also a Termination Event (i) if an event with a material adverse effect occurs, (ii) if we fail to make any required payment on debt for borrowed money ha

01 Other Events

Item 8.01 Other Events. On December 20, 2024, we issued a press release regarding this transaction. 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 4.166 Loan and Security Agreement, dated as of December 20, 2024, among the Company, Credit Acceptance Funding LLC 2024-B, Wells Fargo Bank, National Association, and Computershare Trust Company, N.A. 4.167 Backup Servicing Agreement, dated as of December 20, 2024 among the Company, Credit Acceptance Funding LLC 2024-B, Wells Fargo Bank, National Association, and Computershare Trust Company, N.A. 4.168 Amended and Restated Intercreditor Agreement, dated December 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-B, 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 2021-1, 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, Computershare Trust Company, N.A., as trustee and agent, Bank of Montreal, Fifth Third Bank, National Association, as agent, Flagstar Bank, National Association, as agent, Citizens Bank,

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: December 23, 2024 By: /s/ Douglas W. Busk Douglas W. Busk Chief Treasury Officer