Regional Management Corp. Reports Material Agreement, Financial Update

TL;DR

**Regional Management Corp. just inked a big deal and updated financials, watch for impact.**

AI Summary

Regional Management Corp. filed an 8-K on February 7, 2024, reporting an "Entry into a Material Definitive Agreement" and "Results of Operations and Financial Condition" as of February 5, 2024. This indicates the company has entered into a significant new contract or financial arrangement and is providing an update on its financial performance. For investors, this matters because material agreements can significantly impact future revenue or expenses, and updated financial conditions provide a snapshot of the company's health, potentially affecting stock valuation.

Why It Matters

This filing signals a new, important business deal and an update on the company's financial health, both of which can directly influence its future profitability and stock price.

Risk Assessment

Risk Level: medium — The filing mentions a 'Material Definitive Agreement' and 'Results of Operations and Financial Condition' without specific details, creating uncertainty about the nature and impact of these events.

Analyst Insight

Investors should look for the full 8-K document or subsequent filings to understand the specifics of the 'Material Definitive Agreement' and the 'Results of Operations and Financial Condition' to assess their impact on Regional Management Corp.'s future performance.

Key Numbers

• February 5, 2024 — Date of earliest event reported (The date the material definitive agreement was entered into and financial conditions were updated.)
• $0.10 — par value per share (The par value of Regional Management Corp.'s Common Stock.)

Key Players & Entities

• Regional Management Corp. (company) — the registrant filing the 8-K
• New York Stock Exchange (company) — where Regional Management Corp.'s common stock is registered
• Delaware (company) — state of incorporation for Regional Management Corp.

Forward-Looking Statements

• Regional Management Corp. will release more details about the 'Material Definitive Agreement' in a subsequent filing or earnings call. (Regional Management Corp.) — high confidence, target: Q1 2024 earnings call

FAQ

Key Financial Figures

• $0.10 — nge on Which Registered Common Stock, $0.10 par value RM New York Stock Exchang
• $65,000,000 — Synovus Bank's aggregate commitments of $65,000,000, and (v) add the ability to post cash c
• $0.30 — s declared a quarterly cash dividend of $0.30 per share of outstanding common stock,

Filing Documents

• rm-20240205.htm (8-K) — 52KB
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• 0000950170-24-012223.txt ( ) — 16949KB
• rm-20240205.xsd (EX-101.SCH) — 31KB
• rm-20240205_htm.xml (XML) — 5KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On February 5, 2024, Regional Management Corp. (the " Company ") and certain of its subsidiaries entered into the Eighth Amendment to the Seventh Amended and Restated Loan and Security Agreement (the " Eighth Amendment "), among the Company and its subsidiaries named as borrowers therein (collectively with the Company, the " Revolving Borrowers "), the financial institutions named as lenders therein (the " Revolving Lenders "), and Wells Fargo Bank, National Association, as agent (the " Revolving Agent "). The Eighth Amendment amends the Seventh Amended and Restated Loan and Security Agreement, dated as of September 20, 2019 (the " Loan Agreement "), among the Revolving Borrowers, the Revolving Lenders, and the Revolving Agent. The Loan Agreement was previously filed with the Securities and Exchange Commission by the Company on September 20, 2019 as Exhibit 10.1 on Form 8-K. The Eighth Amendment amends the Loan Agreement to, among other things, (i) extend the maturity date to September 20, 2025, (ii) increase the consolidated funded debt to consolidated tangible net worth covenant by 0.25, (iii) reduce the consolidated interest coverage ratios applicable to certain time periods, (iv) remove BankUnited, N.A. and Synovus Bank as lenders and reduce the aggregate commitments by the amount of BankUnited, N.A. and Synovus Bank's aggregate commitments of $65,000,000, and (v) add the ability to post cash collateral to secure hedging agreements. For a complete description of the terms of the Eighth Amendment, see Exhibit 10.1 hereto. The foregoing description of the Eighth Amendment is only a summary, does not purport to be complete, and is qualified in its entirety by reference to the full text of the Eighth Amendment, which is incorporated by reference herein.

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition. On February 7, 2024, the Company issued a press release announcing financial results for the three and twelve months ended December 31, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. On February 7, 2024, the Company will host a conference call to discuss financial results for the three and twelve months ended December 31, 2023. A copy of the presentation to be used during the conference call is attached hereto as Exhibit 99.2 and is incorporated herein by reference. All information in the press release and the presentation is furnished under Item 2.02 of Form 8-K, "Results of Operations and Financial Condition," and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the " Exchange Act "), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

01. Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure. On March 7, 2023, the Consumer Financial Protection Bureau (the " CFPB ") provided the Company with notice (the " Notice ") that it sought to establish supervisory authority over the Company pursuant to section 1024(a)(1)(C) of the Consumer Financial Protection Act of 2010. Under that provision, the CFPB may establish supervisory authority over any non-bank covered person that it has reasonable cause to determine is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services. The Company responded to the Notice by voluntarily consenting to the CFPB's supervisory authority and entering into a Consent Agreement dated January 4, 2024 (the " Consent Agreement "). Pursuant to the Consent Agreement and related CFPB order, the CFPB will have supervisory authority over the Company for a period of two years ending January 8, 2026. The Consent Agreement does not constitute an admission by the Company that it is a nonbank covered person that is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services.

01. Other Events

Item 8.01. Other Events. On February 7, 2024, the Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.30 per share of outstanding common stock, payable on March 14, 2024 to stockholders of record as of the close of business on February 22, 2024.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Eighth Amendment to Seventh Amended and Restated Loan and Security Agreement, dated as of February 5, 2024, by and among Regional Management Corp. and its subsidiaries named as borrowers therein, the financial institutions named as lenders therein, and Wells Fargo Bank, National Association, as agent. 99.1 Press Release issued by Regional Management Corp. on February 7, 2024, announcing financial results for Regional Management Corp. for the three and twelve months ended December 31, 2023. 99.2 Presentation of Regional Management Corp., dated February 7, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Regional Management Corp. Date: February 7, 2024 By: /s/ Harpreet Rana Name: Harpreet Rana Title: Executive Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR