Regional Management Corp. Completes $265 Million Asset-Backed Securitization
Regional Management Corp. (NYSE: RM) has successfully completed its 12th asset-backed securitization worth $265 million. The Regional Management Issuance Trust 2025-1 (RMIT 2025-1) notes were issued at a 5.30% weighted-average coupon, representing a 5 bp improvement over the previous issuance. The notes are secured by $298 million of receivables with a 2-year revolving period.
The Class A notes received a 'AAA' rating from Standard & Poor's and Morningstar DBRS. The company utilized the proceeds to pay down variable rate debt facilities and fully pay off notes from its RMIT 2020-1 securitization. Following this transaction, Regional Management's fixed-rate debt comprises approximately 91% of total debt, with a 4.4% weighted-average coupon and a 1.3-year weighted-average revolving duration.
Regional Management Corp. (NYSE: RM) ha completato con successo la sua 12ª cartolarizzazione supportata da attività del valore di 265 milioni di dollari. Le note del Regional Management Issuance Trust 2025-1 (RMIT 2025-1) sono state emesse con un tasso medio ponderato del 5,30%, rappresentando un miglioramento di 5 punti base rispetto all'emissione precedente. Le note sono garantite da 298 milioni di dollari di crediti con un periodo di rotazione di 2 anni.
Le note di Classe A hanno ricevuto un rating 'AAA' da parte di Standard & Poor's e Morningstar DBRS. L'azienda ha utilizzato i proventi per ridurre i debiti a tasso variabile e per estinguere completamente le note della sua cartolarizzazione RMIT 2020-1. Dopo questa transazione, il debito a tasso fisso di Regional Management rappresenta circa 91% del debito totale, con un tasso medio ponderato del 4,4% e una durata media ponderata di rotazione di 1,3 anni.
Regional Management Corp. (NYSE: RM) ha completado con éxito su 12ª titulización respaldada por activos por un valor de 265 millones de dólares. Las notas del Regional Management Issuance Trust 2025-1 (RMIT 2025-1) se emitieron con un cupón promedio ponderado del 5,30%, lo que representa una mejora de 5 puntos básicos en comparación con la emisión anterior. Las notas están garantizadas por 298 millones de dólares en cuentas por cobrar con un período de rotación de 2 años.
Las notas de Clase A recibieron una calificación 'AAA' de Standard & Poor's y Morningstar DBRS. La compañía utilizó los ingresos para pagar deudas a tasa variable y para cancelar completamente las notas de su titulización RMIT 2020-1. Tras esta transacción, la deuda a tasa fija de Regional Management representa aproximadamente 91% de la deuda total, con un cupón promedio ponderado del 4,4% y una duración promedio ponderada de rotación de 1,3 años.
리전널 매니지먼트 코퍼레이션 (NYSE: RM)은 2억 6천 5백만 달러 규모의 12번째 자산 담보 증권화를 성공적으로 완료했습니다. 리전널 매니지먼트 발행 신탁 2025-1 (RMIT 2025-1) 노트는 5.30% 가중 평균 쿠폰으로 발행되었으며, 이전 발행보다 5bp 개선되었습니다. 이 노트는 2억 9천 8백만 달러의 채권에 의해 담보됩니다. 회전 기간은 2년입니다.
A등급 노트는 스탠다드 앤드 푸어스 및 모닝스타 DBRS로부터 'AAA' 등급을 받았습니다. 회사는 수익금을 활용하여 변동금리 부채를 상환하고 RMIT 2020-1 증권화의 노트를 전액 상환했습니다. 이번 거래 이후 리전널 매니지먼트의 고정금리 부채는 총 부채의 약 91%를 차지하며, 4.4%의 가중 평균 쿠폰과 1.3년의 가중 평균 회전 기간을 가지고 있습니다.
Regional Management Corp. (NYSE: RM) a réussi à finaliser sa 12ème titrisation adossée à des actifs d'une valeur de 265 millions de dollars. Les titres du Regional Management Issuance Trust 2025-1 (RMIT 2025-1) ont été émis à un coupon moyen pondéré de 5,30%, représentant une amélioration de 5 points de base par rapport à l'émission précédente. Les titres sont garantis par 298 millions de dollars de créances avec une période de rotation de 2 ans.
Les titres de Classe A ont reçu une notation 'AAA' de la part de Standard & Poor's et Morningstar DBRS. L'entreprise a utilisé les produits pour rembourser des dettes à taux variable et pour rembourser complètement les titres de sa titrisation RMIT 2020-1. Suite à cette transaction, la dette à taux fixe de Regional Management représente environ 91% de la dette totale, avec un coupon moyen pondéré de 4,4% et une durée moyenne pondérée de rotation de 1,3 an.
Regional Management Corp. (NYSE: RM) hat erfolgreich seine 12. asset-backed Securitization im Wert von 265 Millionen Dollar abgeschlossen. Die Anleihen des Regional Management Issuance Trust 2025-1 (RMIT 2025-1) wurden mit einem gewichteten Durchschnittszins von 5,30% ausgegeben, was eine Verbesserung um 5 Basispunkte im Vergleich zur vorherigen Emission darstellt. Die Anleihen sind durch 298 Millionen Dollar an Forderungen mit einer 2-jährigen Revolving-Periode gesichert.
Die Klasse-A-Anleihen erhielten ein 'AAA'-Rating von Standard & Poor's und Morningstar DBRS. Das Unternehmen nutzte die Erlöse, um variabel verzinste Schulden abzubauen und die Anleihen seiner RMIT 2020-1 Securitization vollständig zurückzuzahlen. Nach dieser Transaktion macht die festverzinsliche Verschuldung von Regional Management etwa 91% der Gesamtschulden aus, mit einem gewichteten Durchschnittszins von 4,4% und einer gewichteten durchschnittlichen Revolving-Dauer von 1,3 Jahren.
- Secured AAA rating for Class A notes from S&P and Morningstar DBRS
- Improved coupon rate by 5 basis points compared to previous issuance
- Increased fixed-rate debt to 91% of total debt, reducing interest rate risk
- Favorable 4.4% weighted-average coupon rate on overall debt
- None.
Insights
Regional Management's $265 million asset-backed securitization represents a strategic enhancement to their capital structure with several noteworthy advantages. The
The AAA rating from S&P and Morningstar DBRS on the Class A notes indicates strong confidence in the quality of RM's
Most significantly, this transaction has transformed RM's debt profile, with fixed-rate obligations now comprising
By using proceeds to retire variable-rate debt and the 2020-1 securitization notes, RM has effectively extended their debt maturity profile while maintaining the 2-year revolving period that provides operational flexibility for their consumer lending business. For a consumer finance company like Regional Management, this type of disciplined balance sheet management creates a more stable foundation for their lending operations and supports their capital allocation strategy.
The Regional Management Issuance Trust 2025-1 (RMIT 2025-1) notes were issued at a weighted-average coupon of
“This transaction is a testament to our ability to execute in challenging markets and further demonstrates the strength of Regional and our securitization platform,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “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.
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