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Regional Management (RM) Amends its Senior Credit Facility

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Diversified consumer finance company, Regional Management Corp. (RM - Free Report) , recently amended its senior revolving credit facility agreement. The amended credit facility has increased the revolving line of credit from the previous amount of $538 million to $585 million.

Regional Management has also extended the credit facility’s date of maturity from Sep 2018 to Aug 2019.

Moreover, the upper limit of the accordion feature of the credit facility has been increased to $650 million from $600 million. This hike in the upper limit of the senior revolving credit facility indicates the company’s financial responsibility and strength.

As of Jun 30, 2016, Regional Management had $70.6 million of eligible capacity under the facility, which also contains restrictive covenants and monthly and annual reporting requirements to banks. As Jun 30, 2016, the company was in compliance with all debt covenants.

In Sep 21, 2015, the consumer loan provider amended and restated its senior revolving credit facility agreement, wherein the revolving line of credit was increased to $538 million from the previous amount of $500 million. The company also extended the maturity schedule from May 2016 to Sep 2018.

The amendment and restatement of the aforementioned credit facility marked the completion of the extension process. The company remains focused on pursuing its core strategy of growing its business and broadening its branch footprint.

Notably, the company intends to utilize the expanded credit facility of $585 million to keep funding its ongoing growth initiatives.

Zacks Rank and Stocks to Consider

Currently, Regional Management sports a Zacks Rank #1 (Strong Buy). Investors interested in other stocks from the finance sector can also consider Credit Acceptance Corp. (CACC - Free Report) , SLM Corporation (SLM - Free Report) and Genworth Financial, Inc. (GNW - Free Report) . Whie Credit Acceptance Corp. sports a Zacks Rank #1 (Strong Buy), both SLM Corporation and Genworth Financial hold a Zacks Rank #2 (Buy).

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