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| CACC > SEC Filings for CACC > Form 8-K on 27-Aug-2009 | All Recent SEC Filings |
27-Aug-2009
Entry into a Material Definitive Agreement, Creation of a Direct Financial
The information set forth below under Item 2.03 is hereby incorporated by reference into this Item 1.01.
On August 24, 2009, Credit Acceptance Corporation (the "Company') executed the Third Amended and Restated Loan and Security Agreement ("Warehouse Amendment"), dated as of August 24, 2009 among the Company, CAC Warehouse Funding Corporation II, Wachovia Bank, National Association, Variable Funding Capital Company LLC, Wells Fargo Securities, LLC, and Wells Fargo Bank, National Association. The Warehouse Amendment extends the maturity date of the $325.0 million Warehouse facility from August 26, 2009 to August 23, 2010. In addition, the interest rate was increased from a floating rate equal to the commercial paper rate plus 1% to the commercial paper rate plus 5%. In addition, under the terms of the extension, the minimum levels for the three month average Net Yield Percentage to avoid early amortization or termination of the facility were reduced from 6% and 5% respectively, to 2% and 1% respectively. The Net Yield Percentage for any month is equal to the product of (i) 12, and (ii) 20% of collections less the amount of interest and fees due on the facility, divided by the average borrowing base during the month. Finally, the agreement was modified to provide that in the event that the facility is not renewed and the borrower is in compliance with the terms and conditions of the agreement, the facility will amortize for twelve months. During this time, the outstanding debt will be paid down through the collections on the contributed assets. At the end of the 12-month period, the balance of the facility will be due and payable. There were no other material changes to the terms of the facility.
The Warehouse Amendment is attached as Exhibit 4(f)(121) to this Form 8-K and incorporated herein by reference. The Warehouse Amendment is also summarized in a press release issued by the Company on August 24, 2009, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
On August 24, 2009, the Company issued a press release announcing the execution of the Warehouse Amendment. The press release is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.
(d) Exhibits.
4(f)(121) Third Amended and Restated Loan and Security Agreement, dated as of August 24, 2009 among the Company, CAC Warehouse Funding Corporation II, Wachovia Bank, National Association, Variable Funding Capital Company LLC, Wells Fargo Securities, LLC, and Wells Fargo Bank, National Association.
99.1 Press Release dated August 24, 2009.
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