Regional Management extends $125 million warehouse facility to 2020

By Wendy Van Sickle

Columbus, Ohio, Sept. 6 – Regional Management Corp. extended its $125 million warehouse facility and made some other changes via an amendment to its credit agreement dated June 20, 2017, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the maturity date was extended to Feb. 28, 2020 from Dec. 19, 2018.

The Aug. 30 amendment also

• Increases the class A advance rate;

• Increases the concentration limits applicable to certain types of receivables;

• Deletes some defined terms relating to the full system conversion of the company’s third-party underwriting, servicing, and collection technology platform;

• Increases the percentage associated with the average annualized charge-off ratio trigger within the definitions of “level I trigger event,” “level II trigger event,” and “level III trigger event”;

• In the case of the liquidity facility related to the class A loans provided by a class A lender with respect to a conduit lender, increases the required rating to “AA” from at least “A” from DBRS or an equivalent rating from another nationally recognized statistical rating organization, and in the case of the liquidity facility related to the class B loans provided by a class B lender with respect to a conduit lender, increases the required rating to “A(high)” from at least “A(low)” from DBRS or an equivalent rating from another nationally recognized statistical rating organization; and

• Decreases the total commitment of the Credit Suisse lender group by $25 million.

Wells Fargo Bank, NA is the administrative agent.

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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