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Nicholas Financial raises capital from consortium.

Global Banking News-13 January 2010-Nicholas Financial raises capital from consortium(C)2010 ENPublishing - http://www.enpublishing.co.uk

Global Banking News - 13 January 2010(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk

Consumer finance provider, Nicholas Financial, Inc (NASDAQ: NICK), has announced that it has completed an extended capital raising initiative.

The company said that it has executed a new agreement with lenders wherein the size of a credit line has been increased from USD115m to USD140m. The contract extends the maturity date to November 30, 2011 and includes Wells Fargo Preferred Capital as a new participant in the consortium. The amendment would be effective from January 12, 2010. The pricing of the new agreement would be 300 basis points above 30-day Libor with a one per cent floor on Libor.

Peter L Vosotas, chairman, president and CEO, said, 'This credit line increase will allow the company to continue its planned expansion during the next few years. The company is pleased to continue its long relationship with Bank of America that began in 1993, followed in the ensuing years by 1st Horizon Bank, Capital One Bank, Bank of Scotland and Harris Bank. Our newest addition, Wells Fargo Preferred Capital has joined the lending group replacing Bank of Scotland. We attribute this increase to our conservative business practices since we started our Finance Company 20 years ago.'

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Publication:Global Banking News (GBN)
Date:Jan 13, 2010
Words:249
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