Regional Management Corp. (NYSE: RM), a diversified consumer finance company, announced today that 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% (a 47 basis point improvement over the prior RMIT 2025-1 issued notes), secured by $278 million of receivables, with a 2-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. “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% of our total debt is fixed-rate, with a weighted-average coupon of 4.7% and a weighted-average revolving duration of 1.2 years. 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. All of such securities having been sold, this announcement of their sale appears as a matter of record only.
