| Item 7.01. | Regulation FD Disclosure. |
RMIT 2020-1 Securitization
Regional Management Corp. (the “Company”) announced the pricing of its previously announced private offering and sale of approximately $180 million principal amount of asset-backed notes (the “2020-1 Securitization”). The 2020-1 Securitization will consist of the issuance of four classes of fixed-rate asset-backed notes (the “Notes”) issued by Regional Management Issuance Trust 2020-1 (the “Issuer”), a newly formed special purpose entity that is indirectly owned by the Company. The Notes will be collateralized by a pool of soft secured, hard secured, and unsecured consumer loans having an aggregate principal balance of approximately $187.5 million as of August 31, 2020 (the “Loans”), and a certificate which represents a beneficial interest in certain Loans (the “2020-1A SUBI Certificate”).
The following table summarizes certain terms of the 2020-1 Securitization:
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Principal Amount: | | $134.1 million (Class A) $18.1 million (Class B) $16.1 million (Class C) $11.7 million (Class D) $180.0 million (Total) |
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Interest Rate: | | 2.34% (Class A) 3.23% (Class B) 3.80% (Class C) 6.77% (Class D) |
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Purchase Price (% of Par): | | 99.99466% (Class A) 99.98223% (Class B) 99.99198% (Class C) 99.99674% (Class D) |
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Revolving Period: | | Ends on the close of business on September 30, 2023 |
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Optional Call Date: | | Beginning October 16, 2023 |
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Final Maturity Date: | | October 15, 2030 |
The closing of the 2020-1 Securitization is expected to occur on September 23, 2020, subject to customary closing conditions. The Company intends to apply the net proceeds of the sale of the initial Loans and the 2020-1A SUBI Certificate transferred to Regional Management Receivables III, LLC, as depositor on the Closing Date, to repay a portion of the existing indebtedness under its existing warehouse facility and asset-based lending facility.
The Notes are being offered in a private placement, solely to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or, with respect to certain of the Notes, outside the United States to persons other than “U.S. persons” in reliance on Regulation S under the Securities Act. The Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
This notice does not constitute an offer to sell the Notes, nor a solicitation for an offer to purchase the Notes, in any jurisdiction in which such offer or solicitation would be unlawful.
Investor Presentation
The Company has prepared an updated investor presentation, dated September 23, 2020, which it plans to use during future meetings with investors, stockholders, and analysts. The investor presentation is available at the Company’s investor relations website: www.regionalmanagement.com.
The information set forth or incorporated in this Item 7.01 of this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Item 7.01 of this Form 8-K shall not be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
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