Lower-cost credit line extended for Credit Acceptance (NASDAQ: CACC)
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Credit Acceptance Corporation extended the maturity of its revolving secured line of credit facility with a commercial bank syndicate from June 22, 2028 to June 22, 2029. The facility supports the company’s financing activities for automobile dealers and consumers.
The interest rate on borrowings under the facility was reduced from SOFR plus 197.5 basis points to SOFR plus 175.0 basis points. As of June 9, 2026, the company had $270.5 million outstanding under this credit line, and there were no other material changes to the facility’s terms.
Positive
- None.
Negative
- None.
8-K Event Classification
4 items: 1.01, 2.03, 8.01, 9.01
4 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Credit line maturity: June 22, 2029
Prior maturity: June 22, 2028
Interest margin (new): SOFR + 175.0 bps
+2 more
5 metrics
Credit line maturity
June 22, 2029
New maturity of revolving secured line of credit
Prior maturity
June 22, 2028
Previous maturity date before extension
Interest margin (new)
SOFR + 175.0 bps
Revised rate on borrowings under facility
Interest margin (old)
SOFR + 197.5 bps
Previous rate on borrowings under facility
Outstanding balance
$270.5 million
Amount outstanding under facility as of June 9, 2026
Key Terms
revolving secured line of credit facility, Secured Overnight Financing Rate ("SOFR"), basis points, material definitive agreement, +1 more
5 terms
revolving secured line of credit facility financial
"we have extended the maturity of our revolving secured line of credit facility"
A revolving secured line of credit facility is a bank loan that lets a company borrow, repay and borrow again up to a preset limit, with the loan backed by specific assets (like inventory, receivables, or equipment). Think of it like a business credit card with collateral: it provides short-term cash when needed and reduces liquidity risk, but it can limit flexibility if asset values fall or if lenders impose strict conditions that affect investors’ view of financial health.
Secured Overnight Financing Rate ("SOFR") financial
"The interest rate on borrowings under the facility was decreased from the Secured Overnight Financing Rate ("SOFR") plus 197.5 basis points"
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the actual cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it serves as a reference for loans, bond yields and interest-rate contracts; think of it as the going overnight price to rent money—small changes in that price influence borrowing costs, investment returns and the valuation of interest-sensitive assets.
basis points financial
"decreased from the Secured Overnight Financing Rate ("SOFR") plus 197.5 basis points to SOFR plus 175 basis points"
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
material definitive agreement regulatory
"Item 1.01 Entry Into a Material Definitive Agreement."
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
off-balance sheet arrangement regulatory
"Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant."
An off-balance sheet arrangement is a financial commitment or asset that a company keeps out of its main financial statements so it does not show up as a direct asset or liability. Think of it like renting equipment or using a separate storage locker instead of putting the item in your home: the economic effects exist, but they aren’t listed on the company’s primary balance sheet. Investors care because these arrangements can hide risks, obligations or sources of cash flow that affect a company’s true financial strength and future performance.
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): June 9, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
(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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
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 June 9, 2026, Credit Acceptance Corporation (the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) entered into the Fifteenth Amendment to the Sixth Amended and Restated Credit Agreement, dated as of June 9, 2026, among the Company, Fifth Third Bank, N.A., successor by merger to Comerica Bank and the other banks signatory thereto (collectively, the “Banks”) and Fifth Third Bank, N.A., successor by merger to Comerica Bank, as administrative agent for the Banks. The amendment extends the date on which the revolving secured line of credit facility will cease to revolve from June 22, 2028 to June 22, 2029. The interest rate on borrowings under the facility was decreased from the Secured Overnight Financing Rate (“SOFR”) plus 197.5 basis points to SOFR plus 175.0 basis points. There were no other material changes to the terms of the facility.
As of June 9, 2026, we had $270.5 million outstanding under the facility. The terms and conditions of this transaction are set forth in the agreement attached hereto as Exhibit 4.147 to this Form 8-K and incorporated herein by reference.
Item 8.01 Other Events.
On June 9, 2026, 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 | ||||
4.147 | Fifteenth Amendment to the Sixth Amended and Restated Credit Agreement dated as of June 9, 2026 among the Company, Fifth Third Bank, N.A., successor by merger to Comerica Bank and the other banks signatory thereto, and Fifth Third Bank, N.A., successor by merger to Comerica Bank, as administrative agent for the banks. | ||||
99.1 | Press release dated June 9, 2026. | ||||
| 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: June 15, 2026 | By: | /s/ Jay D. Martin | |||||||||
| Jay D. Martin | |||||||||||
| Chief Financial Officer | |||||||||||
Exhibit 99.1
CREDIT ACCEPTANCE ANNOUNCES EXTENSION
OF REVOLVING SECURED LINE OF CREDIT FACILITY
Southfield, Michigan – June 9, 2026 – Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that we have extended the maturity of our revolving secured line of credit facility with a commercial bank syndicate from June 22, 2028 to June 22, 2029. The interest rate on borrowings under the facility was decreased from the Secured Overnight Financing Rate (“SOFR”) plus 197.5 basis points to SOFR plus 175 basis points.
As of June 9, 2026, we had $270.5 million outstanding under the facility.
There were no other material changes to the terms of the facility.
Description of Credit Acceptance Corporation
We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.
Without our financing programs, consumers are often unable to purchase vehicles, or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.
Investor Relations: Jay Brinkley
Senior Vice President & Treasurer
(248) 353-2700 Ext. 6739
IR@creditacceptance.com
FAQ
What change did Credit Acceptance (CACC) make to its credit facility?
Credit Acceptance extended the maturity of its revolving secured credit line by one year. The facility now matures on June 22, 2029 instead of June 22, 2028, maintaining bank liquidity support for its auto financing operations.
How did the interest rate on Credit Acceptance’s credit line change?
The interest margin over SOFR on the facility was reduced. Borrowings now accrue interest at the Secured Overnight Financing Rate plus 175.0 basis points, down from SOFR plus 197.5 basis points, modestly lowering the company’s borrowing cost on this line of credit.
How much was outstanding on Credit Acceptance’s revolving credit facility?
Credit Acceptance reported $270.5 million outstanding under the facility. This balance was stated as of June 9, 2026, giving investors a snapshot of how much the company was drawing on its extended revolving secured line of credit at that time.
Were there other material changes to Credit Acceptance’s credit facility terms?
The company stated there were no other material changes to the facility. Aside from extending the maturity to June 22, 2029 and reducing the SOFR spread, the existing structural and covenant terms of the revolving secured line of credit remained in place.
Which banks are involved in Credit Acceptance’s amended credit agreement?
The facility is provided by a commercial bank syndicate led by Fifth Third Bank, N.A. Fifth Third Bank, N.A., as successor by merger to Comerica Bank, acts as administrative agent for itself and the other participating banks under the amended credit agreement.