Regional Management Corp. Completes $250 Million Asset-Backed Securitization
Regional Management Corp (NYSE: RM) has completed its 11th asset-backed securitization worth $250 million. The RMIT 2024-2 notes were issued at a weighted-average coupon of 5.34%, representing an 85 bps improvement over the previous issuance. The securitization is secured by $284 million in receivables with a 2-year revolving period. The Class A notes received 'AAA' ratings from S&P and Morningstar DBRS. The proceeds were used to pay off RMIT 2022-2B notes with a 7.51% coupon. The deal was 5.4 times oversubscribed, with the company's fixed-rate debt now representing 83% of total debt, carrying a 4.1% weighted-average coupon.
Regional Management Corp (NYSE: RM) ha completato la sua undicesima cartolarizzazione basata su attivi del valore di 250 milioni di dollari. Le note RMIT 2024-2 sono state emesse con un tasso d'interesse medio ponderato del 5,34%, che rappresenta un miglioramento di 85 punti base rispetto all'emissione precedente. La cartolarizzazione è garantita da 284 milioni di dollari in crediti con un periodo di rotazione di 2 anni. Le note di Classe A hanno ricevuto una valutazione 'AAA' da S&P e Morningstar DBRS. I proventi sono stati utilizzati per estinguere le note RMIT 2022-2B con un coupon del 7,51%. L'operazione è stata sovrascritta di 5,4 volte, e il debito a tasso fisso dell'azienda rappresenta ora l'83% del debito totale, con un coupon medio ponderato del 4,1%.
Regional Management Corp (NYSE: RM) ha completado su undécima titulización respaldada por activos por un valor de 250 millones de dólares. Las notas RMIT 2024-2 se emitieron con un cupón promedio ponderado del 5.34%, lo que representa una mejora de 85 puntos básicos con respecto a la emisión anterior. La titulización está respaldada por 284 millones de dólares en cuentas por cobrar con un período de rotación de 2 años. Las notas de Clase A recibieron calificaciones 'AAA' de S&P y Morningstar DBRS. Los fondos se utilizaron para pagar las notas RMIT 2022-2B con un cupón del 7.51%. La operación fue sobredemandada en 5.4 veces, y la deuda a tipo fijo de la compañía ahora representa el 83% de la deuda total, con un cupón promedio ponderado del 4.1%.
Regional Management Corp (NYSE: RM)은 2억 5천만 달러 규모의 11번째 자산 담보 증권화 작업을 완료했습니다. RMIT 2024-2 채권은 5.34%의 가중 평균 이자율로 발행되어 이전 발행보다 85bp 개선되었습니다. 이번 증권화는 2년의 환매 기간이 있는 2억8400만 달러의 채권으로 담보됩니다. A등급 채권은 S&P와 Morningstar DBRS로부터 'AAA' 등급을 받았습니다. 자산은 7.51%의 이자율을 가진 RMIT 2022-2B 채권 상환에 사용되었습니다. 거래는 5.4배 초과 청약되었으며, 회사의 고정금리 부채는 현재 총 부채의 83%를 차지하고 있으며, 가중 평균 이자율은 4.1%입니다.
Regional Management Corp (NYSE: RM) a terminé sa onzième titrisation adossée à des actifs d'une valeur de 250 millions de dollars. Les notes RMIT 2024-2 ont été émises avec un coupon moyen pondéré de 5,34%, représentant une amélioration de 85 points de base par rapport à l'émission précédente. La titrisation est garantie par 284 millions de dollars de créances avec une période de rotation de 2 ans. Les notes de Classe A ont reçu une note 'AAA' de S&P et Morningstar DBRS. Les produits ont été utilisés pour rembourser les notes RMIT 2022-2B avec un coupon de 7,51%. L'opération a été sursouscrite 5,4 fois, et la dette à taux fixe de l'entreprise représente désormais 83% de la dette totale, avec un coupon moyen pondéré de 4,1%.
Regional Management Corp (NYSE: RM) hat seine 11. asset-backed securitization im Wert von 250 Millionen Dollar abgeschlossen. Die RMIT 2024-2-Anleihen wurden mit einem gewichteten durchschnittlichen Kupon von 5,34% ausgegeben, was eine Verbesserung um 85 Basispunkte gegenüber der vorherigen Emission darstellt. Die Securitization ist durch 284 Millionen Dollar an Forderungen mit einer 2-jährigen Revolvierzeit gesichert. Die Class A-Anleihen erhielten von S&P und Morningstar DBRS die Bewertung 'AAA'. Die Erlöse wurden verwendet, um die RMIT 2022-2B-Anleihen mit einem Kupon von 7,51% abzulösen. Der Deal war 5,4 Mal überzeichnet, und die festverzinsliche Verschuldung des Unternehmens macht nun 83% der Gesamtverschuldung aus, mit einem gewichteten durchschnittlichen Kupon von 4,1%.
- Secured AAA rating from S&P and Morningstar DBRS for Class A notes
- Achieved 85 bps improvement in coupon rate (5.34%) compared to previous issuance
- Deal was 5.4 times oversubscribed, indicating strong investor demand
- Reduced interest expense by replacing 7.51% notes with 5.34% notes
- 83% of total debt is now fixed-rate with favorable 4.1% weighted-average coupon
- None.
Insights
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The refinancing of higher-cost debt (
The Regional Management Issuance Trust 2024-2 (RMIT 2024-2) notes were issued at a weighted-average coupon of
“This transaction clearly demonstrates the ongoing strength of our company and securitization platform,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “We experienced significant demand across all classes of notes, including from new investors. The deal was 5.4 times oversubscribed, allowing us to achieve strong results from tight credit spreads. The securitization further enhances our balance sheet and continues to moderate our exposure to interest rate risk. As of the transaction’s closing, our fixed-rate debt as a percentage of total debt was approximately
The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law. All of such securities having been sold, this announcement of their sale appears as a matter of record only.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” online and in branch locations in 19 states across
Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management’s growth strategy, and opening new branches as planned; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpretations and the failure of related assumptions and estimates; the impact of changes in tax laws and guidance, including the timing and amount of revenues that may be recognized; risks related to the ownership of Regional Management’s common stock, including volatility in the market price of shares of Regional Management’s common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management’s charter documents and applicable state law.
The foregoing factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Regional Management is not responsible for changes made to this document by wire services or Internet services.
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Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Source: Regional Management Corp.
FAQ
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