Regional Management Corp., a diversified specialty consumer finance company and a portfolio company of Palladium Equity Partners, has completed the closing of a secondary offering of its common stock at a price of $27.50 per share. In the secondary offering, Palladium sold 69% of its holdings in Regional Management, representing proceeds of $67 million, or a 5x return on that portion of the firm’s investment. Palladium first invested in Regional Management in 2007 and the company went public in 2012.
Regional (NYSE:RM) is a consumer finance installment loan business offering a variety of credit products to individuals with limited access to traditional sources of consumer credit. Each of its loan products is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments and is repayable at any time without penalty. Regional Management’s loans are sourced through its multiple channel platform, including in its branches, through direct mail campaigns, independent and franchise automobile dealerships, online credit application networks, furniture and appliance retailers, and its consumer website. The company currently operates 198 branch offices in South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma and New Mexico. The company was founded in 1987 and is headquartered in Greenville, SC (www.getregionalcash.com).
Palladium Equity Partners targets investments in business services companies as well as in financial services, consumer/retail, food/restaurants, healthcare, industrial, and media businesses. Palladium has a focus on companies that operate in the US Hispanic market. The principals of Palladium have invested over $1.5 billion of equity in 50 portfolio companies over the last two decades. The firm was founded in 1997 and is based in New York (www.palladiumequity.com).
Stephens, Keefe, Bruyette & Woods, BMO Capital Markets Corp. and JMP Securities served as joint book-running managers for the offering, and FBR Capital Markets & Co. served as the co-manager.
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-26-13