[8-K] Credit Acceptance Corp Reports Material Event

Rhea-AI Filing Summary

Credit Acceptance Corp. (CACC) filed an 8-K disclosing a Sixth Amendment to its $300 million revolving secured warehouse facility originally arranged with Bank of Montreal and affiliates. The amendment:

• Extends the facility’s revolving period 19 months, from Dec 29 2026 to Jul 30 2028.
• Reduces pricing by 16.4 bp to SOFR + 205 bp (prior margin: SOFR + 221.4 bp).
• Leaves all other material terms unchanged.

The company reported no outstanding balance under the facility as of Jul 30 2025, preserving the full $300 million capacity for future funding needs. A related press release was issued and filed as Exhibit 99.1; the full amendment is provided as Exhibit 4.157.

Positive

• Facility maturity extended to July 30 2028, lengthening committed liquidity by 19 months.
• Interest margin reduced to SOFR + 205 bp, lowering potential borrowing costs.
• No outstanding balance preserves borrowing headroom and indicates current leverage unchanged.

Negative

• None.

Insights

Senior Credit Analyst

TL;DR: Longer tenor and lower spread improve liquidity flexibility; impact modest but clearly positive.

The amendment adds nearly two years of committed liquidity at a slightly cheaper rate, strengthening CACC’s funding profile for auto-loan originations. Because there is no current draw, leverage and interest expense are unaffected today, yet the option value of the facility rises. A 16 bp margin cut on $300 million equates to up to $0.5 million in annual interest savings if fully drawn—small but directionally helpful. All other covenants remain intact, suggesting lenders’ credit view is stable. Overall, the disclosure is incremental and positive for liquidity, with negligible downside risk.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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):   July 30, 2025

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)

(IRS Employer Identification No.)

25505 West Twelve Mile Road

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 communications 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value

CACC

The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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 July 30, 2025, Credit Acceptance Corporation (the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) entered into the Sixth Amendment to the Amended and Restated Loan and Security Agreement ("Warehouse Amendment"), dated as of July 30, 2025, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, BMO Capital Markets Corp, and Computershare Trust Company, N.A. The Warehouse Amendment extends the date on which our $300.0 million revolving secured warehouse facility will cease to revolve from December 29, 2026 to July 30, 2028. The interest rate on borrowings under the facility has been decreased from the Secured Overnight Financing Rate (“SOFR”) plus 221.4 basis points to SOFR plus 205 basis points. There were no other material changes to the terms of the facility.

As of July 30, 2025, we did not have a balance outstanding under the facility.

The terms and conditions of this transaction are set forth in the agreement attached hereto as Exhibit 4.157 to this Form 8-K and incorporated herein by reference

Item 8.01 Other Events.

On July 30, 2025, we issued a press release regarding this transaction. 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.

Exhibit No.			Description
4.157			Sixth Amendment to Amended and Restated Loan and Security Agreement dated as of July 30, 2025 by and among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, BMO Capital Markets Corp., and Computershare Trust Company, N.A
99.1			Press release dated July 30, 2025.
104			Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

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: August 4, 2025			By:			/s/ Jay D. Martin
						Jay D. Martin
						Chief Financial Officer