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Regional Management gets restated $640 million revolver due 2022
By Angela McDaniels
Tacoma, Wash., Sept. 20 – Regional Management Corp. entered into an amended and restated loan agreement on Friday that provides for an up to $640 million senior revolving credit facility due Sept. 20, 2022, according to an 8-K filing with the Securities and Exchange Commission.
The revolver has a borrowing base of up to 85% of secured eligible finance receivables, up to 80% of unsecured eligible finance receivables and up to 60% of finance receivables constituting eligible delinquent renewals.
The syndicate of banks is comprised of Wells Fargo Bank, NA, Bank of America, NA, BMO Harris Financing, Inc., First Tennessee Bank NA, Texas Capital Bank, NA, Synovus Bank, Axos Bank, and BankUnited, NA. Wells Fargo is the agent.
The revolver has a $10 million accordion feature.
The interest rate is one-month Libor, with a 1% Libor floor, plus 300 basis points. The margin increases to 325 bps when the availability percentage is less than 10%.
The company also pays a 65 bps unused line fee when the daily average outstanding balance over a calendar month is less than 30% of the total credit facility. This fee decreases to 50 bps when the daily average outstanding balance is less than 65% and greater than or equal to 30% of the total credit facility. It further decreases to 37.5 bps when the daily average outstanding balance is equal to or greater than 65% of the total credit facility.
The revolver is collateralized by some of the company’s assets, including some of its finance receivables and the equity interests of some of its subsidiaries.
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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