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): September 18, 2007 (September 13, 2007)
FIRST ACCEPTANCE CORPORATION
(Exact Name of Registrant as Specified in Charter)
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Delaware
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1-6802
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75-1328153 |
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(State or Other Jurisdiction
of Incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.) |
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3322 West End Ave, Suite 1000
Nashville, Tennessee
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37203 |
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(Address of Principal Executive
Offices)
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(Zip Code) |
(Registrants Telephone Number, Including Area Code)
(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 (see General
Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c)) |
Item 1.01. Entry into a Material Definitive Agreement.
On September 13, 2007, First Acceptance Corporation (the Company) entered into an amendment
(the Amendment) to the Revolving Credit and Term Loan Agreement, dated as of January 12, 2006 (as
amended from time to time, the Credit Agreement), by and among the Company, SunTrust Bank, as
administrative agent and a lender, and First Bank, as a lender.
The Amendment reduced the maximum borrowing capacity under the Companys revolving credit
facility from $5,000,000 to $2,000,000, requires the Company to make a principal prepayment on its
term loan facility of at least $6,000,000 on or before December 31, 2007, increased the applicable
margin for both facilities from LIBOR plus 175 basis points to LIBOR plus 250 basis points, and
amended the financial covenants contained in the Credit Agreement.
The foregoing description of the Amendment is qualified in its entirety by reference to the
Amendment, which is attached as Exhibit 10.1 and incorporated herein by this reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On September 13, 2007, the Company entered into the Amendment, the material terms and
conditions of which are described in Item 1.01 above and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
The following exhibit is filed or furnished herewith as noted above:
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Exhibit Number |
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Description |
10.1
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Waiver and Fourth Amendment to Revolving Credit and Term Loan Agreement, dated
September 13, 2007, by and among First Acceptance Corporation, SunTrust Bank, as
administrative agent and as a lender, and First Bank, as a lender. |
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