Regional Management Revamps Loan Terms and Covenants

Regional Management (RM) has released an update to notify the public and investors about an entry into a material definitive agreement.

Regional Management Corp. and its subsidiaries have recently updated their loan agreement terms with lenders, extending the loan’s maturity date to 2025 and adjusting financial covenants to allow for more debt relative to tangible net worth. They’ve also modified interest coverage ratios, removed two lenders reducing total commitments, and added provisions to use cash as collateral for hedging agreements. This strategic financial move aims to optimize the company’s borrowing capacity and flexibility.

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For a comprehensive understanding of the announcement, you can read the full document here.