Business Context and Reporting Period
Company: Regional Management Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: September 23, 2020
Event: Pricing of the "2020-1 Securitization," a private offering of approximately $180 million in asset-backed notes.
Key Financial Metrics and Transaction Details
The Company announced the sale of fixed-rate asset-backed notes collateralized by a pool of consumer loans (soft secured, hard secured, and unsecured) with an aggregate principal balance of approximately $187.5 million as of August 31, 2020.
| Note Class | Principal Amount | Interest Rate | Purchase Price (% of Par) |
|---|---|---|---|
| Class A | $134.1 million | 2.34% | 99.99466% |
| Class B | $18.1 million | 3.23% | 99.98223% |
| Class C | $16.1 million | 3.80% | 99.99198% |
| Class D | $11.7 million | 6.77% | 99.99674% |
| Total | $180.0 million | - | - |
Transaction Terms:
- Revolving Period: Ends September 30, 2023.
- Optional Call Date: Beginning October 16, 2023.
- Final Maturity Date: October 15, 2030.
- Use of Proceeds: Repayment of a portion of existing indebtedness under the Company's warehouse facility and asset-based lending facility.
Material Changes and Outlook
This filing represents a new financing event rather than a comparison to prior period financial results. The filing does not provide specific revenue, profit, or cash flow metrics for the reporting period, nor does it contain forward-looking guidance on earnings or operational performance beyond the terms of the securitization.
Risks and Contingencies
- Private Placement: The notes are offered solely to qualified institutional buyers under Rule 144A or to non-U.S. persons under Regulation S. They are not registered under the Securities Act.
- Closing Conditions: The closing is expected on September 23, 2020, subject to customary closing conditions.
- Legal Disclaimer: The investor presentation referenced is not deemed "filed" for purposes of Section 18 of the Exchange Act and is not incorporated by reference except as expressly stated.
Investor Verification Checklist
- Verify the successful closing of the $180 million securitization on September 23, 2020.
- Confirm the application of net proceeds toward the reduction of the warehouse facility and asset-based lending facility debt.
- Review the updated investor presentation dated September 23, 2020, available on the Company's investor relations website.
- Monitor the performance of the underlying loan pool (approx. $187.5 million) collateralizing the notes.