- Increases Committed Line to $538 Million and Adds Lender to
Syndicate -
- Extends Maturity of Credit Facility to September 2018 -
GREENVILLE, S.C.--(BUSINESS WIRE)--Sep. 21, 2015--
Regional Management Corp. (NYSE:RM), a diversified specialty consumer
finance company, announced today that it has amended and restated its
senior revolving credit facility agreement, receiving an increase in the
committed line under the credit facility to $538 million from its
previous amount of $500 million, and a maturity extension from May 2016
to September 2018. The upper limit of the accordion feature of the
credit facility remains at $600 million.
In addition to the increase, as part of the renewed credit facility,
Capital Bank N.A. joins the group of original lenders, each of which is
maintaining or increasing its commitment under the renewed credit
facility. Language has also been added to the agreement to allow
Regional Management to pursue an automobile loan securitization of up to
$100 million without causing a reduction in the committed line.
“Today’s closing of the amended and restated loan agreement is the
culmination of a comprehensive process with our lenders,” said Michael
R. Dunn, Chief Executive Officer of Regional Management Corp. “We want
to thank our group of lenders for their continued confidence in Regional
and in what we are building, and we want to welcome Capital Bank to our
bank group. With the extension process now complete, we are continuing
to pursue our core strategy of growing our business and expanding our
branch footprint.”
Borrowing terms under the facility remain largely unchanged—borrowings
bear interest, payable monthly, at rates equal to LIBOR of a maturity
the Company elects between one month and six months, with a LIBOR floor
of 1.00%, plus an applicable margin of 3.00%. Alternatively, the Company
may pay interest at a rate based on the prime rate plus an applicable
margin of 2.00%. The Company also pays an unused line fee of 50 basis
points per annum, which declines to 37.5 basis points at certain usage
levels, payable monthly. The senior revolving credit facility is
collateralized by certain of the Company’s assets, including
substantially all of its finance receivables and equity interests of
substantially all of its subsidiaries. The credit agreement contains
certain covenants and restrictions, including maintenance of specified
interest coverage and debt ratios, restrictions on distributions and
limitations on other indebtedness, maintenance of a minimum allowance
for loan losses, and certain other restrictions. The agreement also
contains other representations, warranties, and covenants that the
Company believes are customary for agreements of this nature and in its
industry, including new language addressing the impact on the loan
agreement of the occurrence of certain regulatory events.
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/20150921005314/en/
Source: Regional Management Corp.
Investor Relations
Garrett Edson, 203-682-8331