Item 1.01. Entry into a Material Definitive Agreement.
The information contained in Item 2.03 of this report is hereby incorporated by
reference into this Item 1.01. The registrant disclaims any implication that the
agreements relating to the transactions described in this report are other than
agreements entered into in the ordinary course of its business.
Warehouse Credit Facility Doubled
its wholly-owned subsidiary
revolving credit agreement (the “Credit Agreement”) and related agreements, all
of which have been in place since
under the Credit Agreement is a subsidiary of
the Credit Agreement are to be secured by automobile receivables that CPS now
holds or may purchase in the future from dealers, which receivables CPS would
then sell or contribute to the Borrower.
Under the Credit Agreement, and subject to its terms and conditions, the Lenders
have increased the capacity from
time prior to the funding termination date up to a maximum of
outstanding at any time. The amount that may be advanced under the Credit
Agreement will be up to 88% of the principal amount of eligible pledged
receivables. The advance percentage is dependent on characteristics of the
pledged receivables, the terms of future term securitizations executed by CPS,
and on performance of receivables purchased by CPS within the preceding three
years, as to which there can be no assurance. The funding termination date is
events. The amounts outstanding could become due at an earlier date, if any of
certain defined events of default were to occur.
Loans under the Credit Agreement bear interest at a floating rate set as a
margin above the secured overnight financing rate. In connection with the
amendment of the Credit Agreement, CPS has paid a closing fee of approximately
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information provided in response to item 1.01 is incorporated herein by
Warehouse Credit Facility
CPS first incurred indebtedness under the revolving credit agreement in
vehicle receivables from dealers. CPS does not undertake to provide updates
regarding the amount of indebtedness outstanding from time to time, and no
inference should be drawn that such indebtedness has not changed.
Item 9.01. Financial Statements and Exhibits.
Neither financial statements nor pro forma financial information are filed with
One exhibit is included with this report:
99.1 News release re doubling of credit facility. 104 Cover Page Interactive Data File (embedded within the inline XBRL document). 2
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