UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): June 14, 2007
CREDIT ACCEPTANCE CORPORATION
(Exact name of registrant as specified in its charter)
Michigan 000-20202 38-1999511
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
25505 West Twelve Mile Road, Suite 3000,
Southfield, Michigan 48034-8339
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 248-353-2700
Not Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
(a) On June 14, 2007, the Company executed the Third Amendment (the
"Amendment"), dated as of June 14, 2007, to the Fourth Amended and
Restated Credit Agreement (the "Revised Credit Agreement"), dated
February 7, 2006, between the Company, the Banks which are parties
thereto from time to time, and Comerica Bank as Administrative Agent
for the Banks. The Amendment extends the maturity of the credit
facility from June 20, 2008 to June 20, 2009. The Amendment also
reduces the amount of the facility from $135 million to $75 million
because the amount of borrowings available under this facility and the
Company's $325 million warehouse facility exceed the Company's current
borrowing needs. The interest rate on borrowings under the facility
has been reduced from the prime rate or 1.30% over the Eurocurrency
rate, at the Company's option, to the prime rate minus 1.65% or 1.25%
over the Eurocurrency rate, at the Company's option. In addition, the
borrowing base limitation was modified to increase the advance rate
from 75% to 80% of the net book value of Dealer Loans and from 75% to
80% of the net book value of Consumer Loans purchased by the Company.
The Amendment also relaxed the funded debt to tangible net worth ratio
and fixed charge coverage ratio financial covenants, eliminated the
minimum tangible net worth covenant and added a covenant requiring
positive consolidated net income as of the end of each fiscal quarter
(calculated for the two fiscal quarters then ending). The Revised
Credit Agreement continues to be secured by a lien on most of the
Company's assets. The Revised Credit Agreement is attached as Exhibit
4(c)(21) to this Form 8-K and incorporated herein by reference.
ITEM 8.01. OTHER EVENTS.
On June 14, 2007, the Company issued a press release announcing the execution of
the Revised Credit Agreement. The press release is attached as Exhibit 99.1 to
this Form 8-K and incorporated herein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
4(c)(19) First Amendment, dated as of September 20, 2006, to Fourth
Amended and Restated Credit Agreement, dated February 7, 2006, between
the Company, the Banks which are parties thereto from time to time,
and Comerica Bank as Administrative Agent for the Banks
4(c)(20) Second Amendment, dated as of January 19, 2007, to Fourth
Amended and Restated Credit Agreement (the "Revised Credit
Agreement"), dated February 7, 2006, between the Company, the Banks
which are parties thereto from time to time, and Comerica Bank as
Administrative Agent for the Banks
4(c)(21) Third Amendment, dated as of June 14, 2007, to Fourth Amended
and Restated Credit Agreement (the "Revised Credit Agreement"), dated
February 7, 2006, between the Company, the Banks which are parties
thereto from time to time, and Comerica Bank as Administrative Agent
for the Banks.
99.1 Press Release dated June 14, 2007
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
(Registrant)
By: /s/ Douglas W. Busk
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Douglas W. Busk
Treasurer
June 19, 2007