GREENVILLE, S.C.--(BUSINESS WIRE)--Dec. 14, 2015--
Regional Management Corp. (NYSE:RM), a diversified specialty consumer
finance company, announced today that it and its wholly-owned
subsidiary, Regional Management Receivables, LLC (“RMR”), have entered
into a credit agreement with Wells Fargo Bank, N.A., as lender,
providing for a $75 million amortizing loan to RMR. The loan is secured
by automobile receivables originated by Regional Management
subsidiaries. RMR, as borrower under the facility, will pay interest of
3.00% per annum on the loan balance from the closing date until the date
the loan balance has been fully repaid.
“We are pleased to announce this new credit agreement, which provides us
with additional funding capacity at an attractive fixed rate, thus
presenting us with further opportunity to grow our business,” said
Michael R. Dunn, Chief Executive Officer of Regional Management Corp.
“In addition, the structure and processes we have put in place for this
credit agreement pave the way for us to close a public securitization in
the future if the conditions are desirable. Overall, the new agreement
enhances our financial position as we continue to focus on building a
profitable and well-managed business for the long term.”
Under the credit agreement, Regional Management will act as servicer of
the automobile receivables securing the facility, and certain of
Regional Management’s subsidiaries will act as subservicers. Wells Fargo
Bank, N.A. will also act as collateral custodian and backup servicer for
the facility, and Wells Fargo Securities, LLC will act as administrative
agent for the lender. The principal of the loan is payable in
installments on each payment date, unless Regional Management exercises
its right to prepay the loan. The credit agreement terminates in
December 2022. Regional Management used the loan to pay down a portion
of its senior revolving credit facility.
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: the continuation or worsening of adverse conditions in the
global and domestic credit markets and uncertainties regarding, or the
impact of, governmental responses to those conditions; changes in
interest rates; risks related to acquisitions; 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; recently-enacted or proposed
legislation; 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 charge-offs); changes in
Regional Management’s markets and general changes in the economy
(particularly in the markets served by Regional Management); 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 and is not responsible
for updating the information contained in this press release beyond the
publication date, or for changes made to this document by wire services
or Internet services.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified specialty 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 and Georgia. 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 http://www.RegionalManagement.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151214006171/en/
Source: Regional Management Corp.
Investor Relations
Garrett Edson, 203-682-8331