Dollar Financial Corp Announces New $200 Million Global Revolving Credit Facility
March 03 2011 - 4:14PM
Business Wire
Dollar Financial Corp (NASDAQ:DLLR - News), a leading
international diversified financial services company primarily
serving unbanked and under-banked consumers for over 30 years,
today announced a new four-year $200 million global revolving
credit facility, with a potential to further expand the credit
facility to $250 million. Interest payable on borrowings under the
new facility, which replaces the Company’s existing $75.0 million
revolving credit facility in the United States and C$28.5 million
facility in Canada, will be derived from a pricing grid based on
the Company’s total leverage ratio, which currently allows
borrowings at an interest rate of LIBOR plus 400 bps, or
approximately 4.25%. The new revolving credit facility is set to
mature on March 3, 2015.
Commenting on the agreement, Randy Underwood, the Company’s
Executive Vice President and Chief Financial Officer, stated, “As
compared to our previous credit agreement, this new larger facility
will now allow for multiple tranches of multi-currency borrowings.
This should enable the Company to deploy funds around the world in
a more efficient and expeditious manner to facilitate the continued
execution of our multi-country, multi-product, and multi-channel
business expansion and diversification strategy. The Company
continues to maintain an active global acquisition pipeline and
this facility will, in addition to providing for short term
liquidity needs in the normal course of business, provide
additional capacity and enhanced flexibility for pursuing these
opportunities.”
The new revolving credit facility may be used to initially fund
a portion of the Company’s previously announced $195.0 million
pending acquisition of Purpose U.K. Holdings Limited, the parent
company of Month End Money (“MEM”). MEM, which operates under the
brand name PaydayUK, is the leading provider of internet loans in
the United Kingdom through both internet and telephony-based
technologies.
About Dollar Financial Corp
Dollar Financial Corp is a leading international diversified
financial services company primarily serving unbanked and
under-banked consumers and small business owners for over 30 years.
Through its retail storefront locations as well as by other means,
such as via the Internet, the Company provides a range of consumer
financial products and services in seven countries (Canada, the
United Kingdom, the United States, the Republic of Ireland, Sweden,
Finland and Poland) to consumers who, for reasons of convenience
and accessibility, purchase some or all of their financial services
from the Company rather than from banks and other financial
institutions. The Company’s products, principally its short-term
consumer loans, check cashing services, secured pawn loans and gold
buying services, provide customers with immediate access to cash
for living expenses or other episodic needs. The Company also
offers high-value ancillary services, including Western Union money
order and money transfer products, electronic tax filing,
reloadable VISA® and MasterCard® debit cards, foreign currency
exchange, and other services. In addition, through its branded
Military Installment Loan and Education Services, or MILES®
program, the Company provides fee based services to enlisted
military personnel applying for loans to purchase new and used
vehicles that are funded and serviced under an exclusive agreement
with a major third-party national bank.
At December 31, 2010, the Company’s global retail operations
consisted of 1,226 locations, including 1,126 company-operated
financial services stores and 100 franchised and agent locations,
conducting business primarily under the names Money Mart®, Money
Shop®, Insta-Cheques®, The Check Cashing Store®, Sefina® and
MoneyNow® in Canada, the United Kingdom, the United States, the
Republic of Ireland, Sweden, Finland and Poland. For more
information, please visit the Company's website at www.dfg.com.
Forward Looking Statement
This news release contains forward looking statements,
including, among other things, statements regarding the following:
pending or recent acquisitions; the Company’s future results,
growth, guidance and operating strategy; the global economy; the
effects of currency exchange rates on reported operating results;
the developing regulatory environment in Canada, the U.K., the
United States, and other countries; the impact of future
development strategy, new stores and acquisitions; litigation
matters; expected financing initiatives; stock splits; and the
performance of new products and services. These forward looking
statements involve risks and uncertainties, including risks related
to: the regulatory environments; current and potential future
litigation; the identification of acquisition targets; the
consummation of announced pending acquisitions, the integration and
performance of acquired stores and businesses; the performance of
new stores; the impact of debt financing transactions; the results
of certain ongoing income tax appeals; and the effects of new
products and services on the Company’s business, results of
operations, financial condition, prospects and guidance; and
uncertainties related to the effects of changes in the value of the
U.S. Dollar compared to foreign currencies. There can be no
assurance that the Company will attain its expected results,
successfully consummate announced pending acquisitions,
successfully integrate any of its acquisitions, obtain acceptable
financing, or attain its published guidance metrics, or that
ongoing and potential future litigation or the various FDIC,
Federal, state, Canadian, U.K. or foreign legislative or regulatory
activities affecting the Company or the banks with which the
Company does business will not negatively impact the Company’s
operations. A more complete description of these and other risks,
uncertainties and assumptions is included in the Company’s filings
with the Securities and Exchange Commission, the Company’s annual
reports and Forms 10-Q and 10-K. You should not place any undue
reliance on any forward-looking statements. The Company disclaims
any obligation to update any such factors or to publicly announce
results of any revisions to any of the forward-looking statements
contained herein to reflect future events or developments.
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