Regional Management, a specialty consumer finance company, announced that it received an increase in the availability of its senior revolving credit facility to $500 million from its previous amount of $325 million, with a maturity date of May 2016. The accordion feature of the credit facility was also increased from $75 million to $100 million. Bank of America served as agent.
“Today’s $175 million increase of our senior revolving credit facility’s upper limit is further evidence of our company’s fiscal responsibility and strength,” said Thomas Fortin, chief executive officer of Regional Management. “We intend to use the additional monies from the facility to fund product, channel and de novo growth strategies, as well as any value-added acquisition opportunities that may arise.”
Borrowings under the facility bear interest at rates equal to LIBOR of a maturity the company elects between one month and six months, with a LIBOR floor of 1.00%, plus an applicable margin (which was 3.00% as of March 31, 2013) based on its leverage ratio. Alternatively, the company may pay interest at a rate based on the prime rate plus an applicable margin (which was 2.00% as of March 31, 2013).