Regional Management enters $75 million amortizing loan via Wells Fargo

By Marisa Wong

Morgantown, W.Va., Dec. 14 – Regional Management Corp. entered into a $75 million credit agreement on Dec. 11 with Wells Fargo Bank, NA as lender, according to an 8-K filing with the Securities and Exchange Commission.

The amortizing loan is secured by automobile receivables originated by Regional Management subsidiaries.

Wholly owned subsidiary Regional Management Receivables, LLC, as borrower, will pay 3% interest on the loan balance from the closing date until the balance has been fully repaid.

The principal of the loan is payable in installments on each payment date, unless the company exercises its right to prepay the loan. The credit agreement terminates in December 2022.

The company used the loan to pay down a portion of its senior revolving credit facility.

“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,” Michael R. Dunn, chief executive officer of Regional Management, said in a press release.

“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.”

Wells Fargo Securities, LLC is the administrative agent.

The specialty consumer finance company is based in Greenville, S.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.