Regional Management Corp. announced on November 26, 2024, the completion of a $250 million asset-backed securitization, marking its 11th successful transaction. The RMIT 2024-2 notes were issued at a weighted-average coupon of 5.34%, which is an 85 basis point improvement over the prior RMIT 2024-1 issued notes.
The Class A notes of this securitization received a top rating of 'AAA' from both Standard & Poor’s and Morningstar DBRS. The transaction was 5.4 times oversubscribed, indicating significant investor demand across all classes of notes.
A portion of the proceeds from RMIT 2024-2 was used to fully pay off notes from the RMIT 2022-2B securitization, which carried an original weighted-average coupon of 7.51%. This transaction enhances the company's balance sheet and moderates its exposure to interest rate risk, with fixed-rate debt at approximately 83% of total debt and a weighted-average coupon of 4.1%.
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