Nicholas Financial, a branch-based subprime automotive lender, entered into a senior secured credit facility with Wells Fargo Bank as agent. The facility provides for a line of credit of up to $175 million.
Nicholas Financial announced that NF Funding I, a newly-formed, wholly-owned, special purpose financing subsidiary of the company (the “borrower”) entered into a senior secured credit facility on March 29. The company’s prior credit facility was paid off in connection with this new credit facility.
Nicholas Financial amended its existing credit facility which, among other changes, extended the maturity date to March 31, 2019 and adjusted the availability of funds thereunder.
Prospect Capital announced Prospect entered into an agreement to acquire 100% of Nicholas Financial’s stock. Prospect intends to refinance the business using proceeds from a $250 million revolver from Bank of America and Wells Fargo.