In a move to strengthen their long-term plans, Quest Resource Holding Corporation and Consumer Portfolio Services (CPS) have both announced the renewal of their credit facilities. Quest Resource has extended the maturity dates for its credit facilities with Monroe Capital Management Advisors, LLC and PNC Bank, NA. The Monroe Credit Agreement will now mature on October 19, 2026, and the PNC Credit Agreement will mature on April 19, 2026 [773ee841]. CPS, on the other hand, has renewed its two-year revolving credit agreement with Ares Agent Services, L.P. The loans under the renewed credit agreement will be secured by automobile receivables that CPS holds, originates directly, or purchases from dealers in the future. CPS has the option to borrow on a revolving basis through March 31, 2026, and can choose to repay the outstanding loans in full or allow them to amortize through March 31, 2028 [c4bd9e1e].
These credit facility renewals demonstrate the commitment of both companies to their long-term growth and sustainability objectives. Quest Resource specializes in waste and recycling services and is focused on meeting environmental and sustainability objectives. The extension of their credit facilities will provide them with the necessary financial support to continue their operations and pursue their strategic goals. CPS, on the other hand, is a consumer finance company that specializes in automobile financing. The renewal of their credit facility will enable them to continue providing financing options to consumers and expand their business.
Both companies expressed gratitude for the lenders' support and highlighted the importance of these credit facility renewals in their long-term plans. The Chairman of the Board of Quest Resource indicated that this extension is part of evaluating alternative long-term debt structures, while CPS stated that the renewal of their credit facility will provide them with the necessary liquidity to support their business operations.
Overall, these credit facility renewals reflect the positive outlook for both Quest Resource and CPS. Quest Resource's net income is expected to grow this year, reflecting continuous improvements, while CPS will have the flexibility to borrow and repay loans based on their business needs. The stock of Quest Resource has shown strong returns in the short term, but the Relative Strength Index suggests potential consolidation or a pullback in the near term. The next earnings date for Quest Resource is set for May 13, 2024 [773ee841].