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Regional Management Corp. (NYSE: RM), a Greer, South Carolina-based diversified consumer finance company, announced it has completed a $253 million asset-backed securitization.
The Regional Management Issuance Trust 2025-2 (RMIT 2025-2) notes were issued at a weighted-average coupon of 4.83 percent (a 47 basis point improvement over the prior RMIT 2025-1 issued notes), secured by $278 million of receivables, with a two-year revolving period.
The Class A notes of the securitization received a top rating of “AAA” from Standard & Poor’s and Morningstar DBRS.
The company used a portion of the proceeds from the RMIT 2025-2 securitization to pay down variable rate debt facilities, as well as fully pay off notes from its RMIT 2021-1 securitization.
“This transaction highlights our consistent execution, enduring strength, and resilience in navigating dynamic market environments,” said Robert W. Beck, president and chief executive officer of Regional Management Corp.
Beck added, “It further reflects the sophistication of our funding platform, reinforces our balance sheet, and continues to effectively manage our exposure to interest rate risk. Following the closing, approximately 89 percent of our total debt is fixed-rate, with a weighted-average coupon of 4.7 percent and a weighted-average revolving duration of 1.2 years.”
Beck continued, “We remain focused on executing our long-term strategy through disciplined portfolio expansion, consistent performance, and creating sustainable value for our shareholders.”
The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law.
Regional Management Corp. provides 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 the United States.
Most of its loan products are secured, and each is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty.
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