Debt

3 Months Ended

Mar. 31, 2025

Note 6. Debt

The following is a summary of the Company’s debt as of the periods indicated:


	March 31, 2025							December 31, 2024
Dollars in thousands	Debt		Unamortized Debt Issuance Costs (1)			Net Debt		Debt		Unamortized Debt Issuance Costs (1)			Net Debt
Revolving credit facilities	$	140,783	$	(295	)	$	140,488	$	315,904	$	(437	)	$	315,467
Securitizations		1,337,077		(7,629	)		1,329,448		1,162,432		(5,901	)		1,156,531
Total	$	1,477,860	$	(7,924	)	$	1,469,936	$	1,478,336	$	(6,338	)	$	1,471,998
Unused amount of revolving credit facilities (subject to borrowing base)	$	640,667						$	466,164

(1) Unamortized debt issuance costs related to the revolving warehouse credit facilities are presented within other assets in the consolidated balance sheets. These credit facilities had $2.4 million and $2.2 million in such costs as of March 31, 2025 and December 31, 2024, respectively.

Revolving credit facilities: The Company’s revolving credit facilities are secured by substantially all of the Company’s finance receivables and equity interests of the majority of its subsidiaries. The Company pays unused commitment fees on its revolving credit facilities, generally based upon the average outstanding balance. As of March 31, 2025, the Company held $4.2 million in unrestricted cash. The Company had $125.2 million of immediate available liquidity to draw down cash under the senior revolving credit facility and had no immediate availability to draw down cash under any of its revolving warehouse credit facilities as of March 31, 2025; however, each of the Company’s revolving warehouse credit facilities holds restricted cash reserves to satisfy provisions of its respective credit agreement.

The following table includes the key terms under each of the Company’s revolving credit facilities as of March 31, 2025:


Dollars in thousands	Total Credit Facility		Debt Balance		Restricted Cash Reserves		Advance Rate Cap	Current Advance Rate	Unused Commitment Fee	Revolving Period End Date	Maturity Date
Senior	$	355,000	$	140,778	$	—	83%	67%	0.5% - 1.0%	N/A	Sep 2025
RMR IV warehouse		125,000		1		53	79%	79%	0.4% - 0.7%	May 2025	May 2026
RMR V warehouse		100,000		1		377	80%	80%	0.4% - 0.7%	Nov 2026	Nov 2027
RMR VI warehouse (1)		75,000		1		98	75%	75%	0.5%	Feb 2027	Feb 2028
RMR VII warehouse		125,000		2		326	76%	76%	0.4% - 0.7%	N/A	Oct 2026
Total	$	780,000	$	140,783	$	854

(1) Following a January 2025 amendment, the revolving period end date is now February 2027 (previously February 2025), and the maturity date is now February 2028 (previously February 2026).

Borrowings under the revolving credit facilities bear interest, payable monthly, at a rate equal to the sum of any applicable floor, benchmark adjustment, margin, and the market rate of each respective rate type that was effective as of March 31, 2025 (as follows):


	Floor	Benchmark Adjustment	Margin	Rate Type	Effective Interest Rate
Senior	0.5%	0.1%	3.0%	1-month SOFR	7.4%
RMR IV warehouse	—	0.1%	2.8%	1-month SOFR	7.2%
RMR V warehouse	—	—	2.1%	Conduit	6.7%
RMR VI warehouse (1)	—	—	2.1%	1-month SOFR	6.4%
RMR VII warehouse	—	—	2.4%	1-month SOFR	6.7%

(1) Following a January 2025 amendment, (i) the margin was reduced to 2.1% (previously 2.5%) and (ii) interest may accrue based on the daily or 1-month SOFR (previously only the 1-month SOFR).

Securitizations: From time to time, the Company and its SPE, RMR III, complete private offerings and sales of asset-backed notes through the Company’s Issuance Trusts. The asset-backed notes are secured by finance receivables and other related assets that RMR III purchased from the Company, which RMR III then sells and transfers to the Issuance Trusts. The Issuance Trusts hold

restricted cash reserves to satisfy provisions of the transaction documents. Borrowings under the securitizations bear interest, payable monthly, and principal repayments begin the month subsequent to the end of the revolving period. Prior to maturity, the Company may redeem the notes in full, but not in part, at its option on securitization-specific, designated dates. No payments of principal of the notes will be made during the revolving periods.

The following table includes the key terms under each of the Company’s securitizations as of March 31, 2025:


Dollars in thousands	Issue Date	Issue Amount		Debt Balance		Restricted Cash Reserves		Effective Interest Rate	Revolving Period End Date	Maturity Date
RMIT 2021-1	Feb 2021		248,700		75,840		2,604	3.0%	Feb 2024	Mar 2031
RMIT 2021-2	Jul 2021		200,000		200,192		2,083	2.3%	Jul 2026	Aug 2033
RMIT 2021-3	Oct 2021		125,000		125,202		1,471	3.9%	Sep 2026	Oct 2033
RMIT 2022-1	Feb 2022		250,000		232,459		2,646	3.6%	Feb 2025	Mar 2032
RMIT 2024-1	Jun 2024		187,305		187,788		1,078	6.2%	May 2027	Jul 2036
RMIT 2024-2	Nov 2024		250,000		250,557		1,418	5.3%	Nov 2026	Dec 2033
RMIT 2025-1 (1)	Mar 2025		265,000		265,039		1,489	5.3%	Mar 2027	Apr 2034
Total		$	1,526,005	$	1,337,077	$	12,789

(1) In March 2025, the Company, its SPE, RMR III, and the Company’s indirect SPE, RMIT 2025-1, completed a private offering and sale of $265 million of asset-backed notes. The transaction consisted of the issuance of four classes of fixed-rate, asset-backed notes by RMIT 2025-1. The asset-backed notes are secured by finance receivables and other related assets that RMR III purchased from the Company, which RMR III then sold and transferred to RMIT 2025-1. Prior to maturity in April 2034, the Company may redeem the notes in full, but not in part, at its option on any note payment date on or after the payment date occurring in April 2027. No payments of principal of the notes will be made during the revolving period.

RMIT 2020-1 Securitization: In September 2020, the Company, its SPE, RMR III, and its indirect SPE, RMIT 2020-1, completed a private offering and sale of $180 million of asset-backed notes. In March 2025, the Company and RMR III exercised the right to make an optional principal repayment in full and, in connection with such prepayment, the securitization terminated.

The Company’s debt arrangements are subject to certain covenants, including monthly and annual reporting, maintenance of specified interest coverage and debt ratios, restrictions on distributions, limitations on other indebtedness, and certain other restrictions. As of March 31, 2025, the Company was in compliance with all debt covenants.