Nicholas Financial obtains $175 million replacement line of credit

Chicago, Nov. 8 – Nicholas Financial, Inc. and Nicholas Data Services, Inc. entered into a new $175 million three-year senior secured credit facility with Wells Fargo Bank, NA as agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The facility is a line of credit with the availability of funds limited to an advance rate of between 80% and 85% of the value of eligible receivables.

Outstanding advances will have an interest rate of SOFR plus 225 basis points.

The borrowers’ obligations under the credit facility are secured by substantially all of their assets, and Nicholas Data Services pledged its equity interest in Nicholas Financial as additional collateral.

If the lenders terminate the facility for an event of default or if Nicholas prepays the loan and terminates the facility, there will be a 2% fee during year one, a 1% fee during year two and 0.5% if the termination or prepayment occurs thereafter.

The company paid off a separate earlier facility in connection with the new facility.

Nicholas Financial is a consumer and auto loan company based in Clearwater, Fla.

© 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.