CLEARWATER, Fla. — Nicholas Financial recently announced that the company has reached a new agreement with its consortium of lenders to increase the size of its credit line from $115 million to $140 million.

The new contract extends the maturity date to Nov. 30, 2011, and adds Wells Fargo Preferred Capital as a new participant in the company's consortium of lenders.

The pricing of the new agreement is 300 basis points above 30-day Libor, with a 1 percent floor on Libor.

"This credit line increase will allow the company to continue its planned expansion during the next few years," explained Peter Vosotas, chairman and president and chief executive officer. "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," he continued.

New Office in Gastonia, N.C.

The company also recently announced it has opened a new branch office in Gastonia, N.C.

The new location is designed to continue Nicholas Financial's planned expansion of branch offices. The company now has 50 offices, including locations in Florida, Georgia, North Carolina, South Carolina, Virginia, Ohio, Michigan, Maryland, Kentucky, Indiana, Alabama and Tennessee.

Each of these offices is a full-service lending and collection facility, officials noted.

The new Gastonia office is apparently the second the company has established in the greater Charlotte area and sixth in North Carolina.

Officials said Nicholas Financial will continue to evaluate potential branch locations in both new and existing markets.

The company specializes in purchasing and servicing auto and light truck installment sales contracts from new and used car dealers.