Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On June 25, 2020, Credit Acceptance Corporation (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) entered into Amendment No. 4 to the Sixth Amended and Restated Loan and Security Agreement, dated as of June 25, 2020, among the Company, CAC Warehouse Funding Corporation II and Wells Fargo Bank, National Association, which modified the terms of our $400.0 million revolving secured warehouse facility.
On June 26, 2020, we entered into the Fourth Amendment to the Loan and Security Agreement, dated as of June 26, 2020, among the Company, CAC Warehouse Funding LLC VII, and Credit Suisse AG, New York Branch, which modified the terms of our $150.0 million revolving secured warehouse facility.
On June 30, 2020, we entered into the Sixth Amendment to the Sixth Amended and Restated Credit Agreement, dated as of June 30, 2020, among the Company, Comerica Bank and the other banks signatory thereto (collectively, the “Banks”) and Comerica Bank as administrative agent for the Banks, which modified the terms of our $340.0 million revolving secured line of credit facility.
The purpose of each of the three amendments was to modify the basis for calculating our compliance with the minimum net income and fixed charge coverage covenants from our current method of accounting to the basis of accounting that was used prior to January 1, 2020. There were no other material changes to the terms of the facilities.
As of July 1, 2020, we had $201.0 million outstanding under our $400.0 million revolving secured warehouse facility, $125.0 million outstanding under our $150.0 million revolving secured warehouse facility and $163.3 million outstanding under our $340.0 million revolving secured line of credit facility.