Regional Management amends warehouse facility, adds separate facility

Chicago, April 21 – Regional Management Corp. recently amended its warehouse facility with subsidiary Regional Management Receivables II, LLC listed as borrower and entered into a new warehouse facility with subsidiary Regional Management Receivables IV, LLC as borrower, according to an 8-K filing with the Securities and Exchange Commission.

RMR II facility

Regional Management entered into a second amended and restated credit agreement on April 14 for the RMR II facility.

The amendment changed the administration agent to Credit Suisse AG, New York Branch from Wells Fargo Bank, NA.

Commitments were reduced under the facility to $75 million from $125 million.

The scheduled termination date was moved to March 31, 2023.

Benchmark replacement language was added.

The total advance rate was increased.

The facility also now provides for the financing of convenience checks, small loans and online originated loans.

Regional Finance Co. Illinois, LLC was added as an originator.

And with a few other changes, the amended agreement increases the threshold of certain triggers relating to the average “delinquency ratio (60+ days),” “annualized net charge-off ratio,” and “excess spread percentage,” in each case, over three consecutive collection periods as specified in the definitions of “level I trigger event,” “level II trigger event” and “level III trigger event.”

RMR IV facility

With Wells Fargo Bank, NA as administrative agent, the company and RMR IV entered into a new credit agreement for a revolving $125 million warehouse facility.

The facility is secured by some large and small consumer loans and convenience checks that were originated by the company’s subsidiaries.

The advance rate on the facility is 81%.

The interest rate is based on one-month Libor plus 235 basis points plus a step-up margin of 100 bps after the termination of the revolving period on April 19, 2023 or 250 bps on or after an event of default.

Based on utilization, the commitment fee ranges from 35 bps to 70 bps.

The amortization period is 12 months after the termination of the revolving period, and the maturity date is 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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