Regional Management amends $683 million revolver, obtains $125 million warehouse facility

By Wendy Van Sickle

Columbus, Ohio, June 20 – Regional Management Corp. amended its senior revolving credit facility on Tuesday to provide for a $683 million revolver with a borrowing base of up to 85% of secured eligible finance receivables and up to 70% of unsecured eligible finance receivables, according to an 8-K filing with the Securities and Exchange Commission.

The revolver may be expanded up to $700 million.

Borrowings bear interest at Libor plus 300 basis points, stepping up to 325 bps when availability is less than 10%, with a 1% Libor floor.

There is an unused fee of 50 bps per annum, which decreases to 37.5 bps when the average outstanding balance exceeds $413 million.

Bank of America, NA is the agent.

Also on Tuesday, Regional Management entered into a $125 million warehouse facility with Wells Fargo Bank, NA as administrative agent and Credit Suisse AG, New York Branch as syndication agent.

Borrowings bear interest at Libor plus 335 bps for class A lender commitments and Libor plus 435 bps for class B lender commitments. The margin may be decreased to 310 bps for class A loans and 410 bps for class B loans upon achievement of certain milestones.

There will be a step-up of 100 bps at the end of an 18-month revolving period. The facility amortizes starting 12 months after the end of the revolving period.

There is an unused fee ranging from 35 bps to 85 bps, depending on utilization.

The facility is expandable to $150 million during the revolving period. It matures upon termination of the amortization period.

Regional Management Corp. is a Greenville, S.C.-based 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.

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