CLEARWATER, Fla., March 29, 2019 (GLOBE NEWSWIRE) -- Nicholas Financial, Inc. (NASDAQ: NICK) announced that NF Funding I, LLC, a newly-formed, wholly-owned, special purpose financing subsidiary of the Company entered into a senior secured credit facility on March 29. The Company’s prior credit facility was paid off in connection with this new credit facility.

Under the new credit facility, the lenders have agreed to extend the Borrower a line of credit of up to $175 million, which will be used to purchase motor vehicle retail installment sale contracts from the Company on a revolving basis. The availability of funds under the credit facility is generally based on the value of non-delinquent receivables. The commitment period for advances under the credit facility is three years. At the end of the commitment period, the outstanding balance would be paid off over a four-year amortization period.