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): January 25, 2008
CREDIT ACCEPTANCE CORPORATION
(Exact name of registrant as specified in its charter)
| |
|
|
|
|
| Michigan
|
|
000-20202
|
|
38-1999511 |
| |
|
|
|
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
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:
|
|
|
| o |
|
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
|
| o |
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
|
| o |
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
|
| o |
|
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. |
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 January 25, 2008, Credit Acceptance Corporation (the “Company”) executed the Fourth Amendment
(the “Amendment”), dated as of January 25, 2008, 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 (the “Banks”), and Comerica Bank as
Administrative Agent for the Banks. The Amendment increases the amount of the facility from $75.0
million to $133.5 million. The Amendment also extends the maturity of the credit facility from
June 20, 2009 to June 22, 2010, provided that the Company reports net income of at least $5.0
million for both the fourth quarter of 2007 and the first quarter of 2008. The interest rate on
borrowings under the credit facility is the prime rate minus 1.65% or 1.25% over the Eurocurrency
rate, at the Company’s option. The borrowing base limitation is 80% of the net book value of
dealer loans and 80% of the net book value of consumer loans purchased by the Company.
The financing may be accelerated
upon the occurrence of an “event of default.” An “event of
default” includes but is not limited to: a default in the
payment of interest or principal when due, and any breach of
covenant or any material breach of representation or warranty that is not cured within the
specified time following notice. 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)(22) to this Form 8-K and incorporated herein by
reference.
On January 25, 2008, 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)(22) Fourth Amendment, dated as of January 25, 2008, to the Fourth Amended and
Restated Credit Agreement, dated February 7, 2006, between Credit Acceptance
Corporation, the Banks which are parties thereto from time to time (the “Banks”), and
Comerica Bank as Administrative Agent for the Banks.
| |
99.1 |
|
Press Release dated January 25, 2008. |