Regional Management Corp. Enters into Warehouse Facility and Increases Availability Under Senior Revolving Credit Facility
21 June 2017 - 6:37AM
Business Wire
- Warehouse Facility Initial Committed Line of
$125 Million; Expandable to $150 Million -
- Senior Revolver Commitment Increased to $638
Million and Maturity Extended to June 2020 -
Regional Management Corp. (NYSE:RM), a diversified consumer
finance company, announced today that it and its wholly-owned
subsidiary, Regional Management Receivables II, LLC, have entered
into a revolving $125 million warehouse facility, which is
expandable to $150 million and will be funded by large loan
receivables. The warehouse facility has an initial term of 18
months, to be followed by a 12-month amortization period. Credit
Suisse is acting as the structuring and syndication agent and Wells
Fargo is acting as the administrative agent.
In addition, Regional Management announced that it has amended
and restated its senior revolving credit facility agreement. The
committed line under the senior revolver has increased to $638
million from its previous amount of $585 million, and the maturity
date has been extended to June 2020. The upper limit of the
accordion feature has also been increased to $700 million from its
previous amount of $650 million. Other borrowing terms under the
facility, including the cost of funds, remain largely
unchanged.
The amended and restated senior revolving credit facility allows
for both the new warehouse facility and for subsequent
securitizations using warehouse collateral, subject to the
satisfaction of certain limited conditions.
“The establishment of our new warehouse facility, along with the
increase in our senior revolving credit facility, is a testament to
the strength of our business and will provide us with significant
additional capability to fund our strategic growth initiatives,”
said Peter R. Knitzer, President and Chief Executive Officer of
Regional Management. “We look forward to our new relationship with
our warehouse facility lenders and very much appreciate the ongoing
long-term support of our senior revolver bank group, including the
group’s newest members, BankUnited and Synovus.”
Forward-Looking Statements
This press release may contain various “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, which represent Regional Management Corp.’s
expectations or beliefs concerning future events. Words such as
“may,” “will,” “should,” “likely,” “anticipates,” “expects,”
“intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,”
and similar expressions may be used to identify these
forward-looking statements. Such forward-looking statements are
about matters that are inherently subject to risks and
uncertainties, many of which are outside of the control of Regional
Management. Factors that could cause actual results or performance
to differ from the expectations expressed or implied in such
forward-looking statements include, but are not limited to, the
following: changes in general economic conditions, including levels
of unemployment and bankruptcies; risks associated with Regional
Management’s transition to a new loan origination and servicing
software system; risks related to opening new branches, including
the ability or inability to open new branches as planned; risks
inherent in making loans, including repayment risks and value of
collateral, which risks may increase in light of adverse or
recessionary economic conditions; changes in interest rates; the
risk that Regional Management’s existing sources of liquidity
become insufficient to satisfy its needs or that its access to
these sources becomes unexpectedly restricted; changes in federal,
state, or local laws, regulations, or regulatory policies and
practices, and risks associated with the manner in which laws and
regulations are interpreted, implemented, and enforced; the timing
and amount of revenues that may be recognized by Regional
Management; changes in current revenue and expense trends
(including trends affecting delinquencies and credit losses);
changes in Regional Management’s markets and general changes in the
economy (particularly in the markets served by Regional
Management); changes in the competitive environment in which
Regional Management operates or in the demand for its products;
risks related to acquisitions; changes in operating and
administrative expenses; and the departure, transition, or
replacement of key personnel. Such factors and others are discussed
in greater detail in Regional Management’s filings with the
Securities and Exchange Commission. Regional Management will not
update the information contained in this press release beyond the
publication date, except to the extent required by law, and is not
responsible for changes made to this document by wire services or
Internet services.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer
finance company providing a broad array of loan products primarily
to customers with limited access to consumer credit from banks,
thrifts, credit card companies, and other traditional lenders.
Regional Management began operations in 1987 with four branches in
South Carolina and has since expanded its branch network across
South Carolina, Texas, North Carolina, Tennessee, Alabama,
Oklahoma, New Mexico, Georgia, and Virginia. Each of its loan
products is structured on a fixed rate, fixed term basis with fully
amortizing equal monthly installment payments and is repayable at
any time without penalty. Regional Management’s loans are sourced
through its multiple channel platform, including in its branches,
through direct mail campaigns, independent and franchise automobile
dealerships, online credit application networks, retailers, and its
consumer website. For more information, please visit
www.RegionalManagement.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170620006487/en/
For Regional Management Corp.Investor RelationsGarrett Edson,
203-682-8331
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