FirstCash Announces Upsize and Pricing of $500 Million Senior Notes Due 2028
August 12 2020 - 5:00PM
FirstCash, Inc. (the “Company”) (Nasdaq: FCFS) today announced that
it has upsized and priced a private offering of $500 million in
aggregate principal amount of senior notes due 2028 (the “Notes”),
representing an increase of $100 million in aggregate principal
amount from the previously announced proposed offering
size. The Notes will pay interest semi-annually at a rate of
4.625% per annum payable on March 1 and September 1 of each
year beginning on March 1, 2021. The Notes will be unsecured senior
obligations of the Company. The offering of the Notes is
expected to close on August 26, 2020, subject to the satisfaction
of customary closing conditions.
The Company intends to use the proceeds from the
offering to redeem all of the $300 million aggregate principal
amount of the Company’s outstanding 5.375% senior notes due 2024
and to repay a portion of the Company’s revolving unsecured credit
facility with the remaining proceeds, after payment of fees and
expenses related to the redemption and offering.
The Notes are being offered in a private
placement, solely to persons reasonably believed to be qualified
institutional buyers in reliance on the exemption from registration
provided by Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”), or outside the United States to
persons other than “U.S. persons” in reliance on Regulation S under
the Securities Act. The Notes have not been registered under the
Securities Act or the securities laws of any other jurisdiction and
may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements.
This notice does not constitute an offer to sell
the Notes, nor a solicitation for an offer to purchase the Notes,
in any jurisdiction in which such offer or solicitation would be
unlawful.
Forward-Looking Information
This release contains forward-looking
statements, including statements about the Notes offering and the
intended use of the net proceeds thereof. Forward-looking
statements, as that term is defined in the Private Securities
Litigation Reform Act of 1995, can be identified by the use of
forward-looking terminology such as “believes,” “projects,”
“expects,” “may,” “estimates,” “should,” “plans,” “targets,”
“intends,” “could,” “would,” “anticipates,” “potential,”
“confident,” “optimistic,” or the negative thereof, or other
variations thereon, or comparable terminology, or by discussions of
strategy, objectives, estimates, guidance, expectations and future
plans. Forward-looking statements can also be identified by the
fact these statements do not relate strictly to historical or
current matters. Rather, forward-looking statements relate to
anticipated or expected events, activities, trends or results.
Because forward-looking statements relate to matters that have not
yet occurred, these statements are inherently subject to risks and
uncertainties.
These forward-looking statements are made to
provide the public with management’s current expectations with
regard to the Notes offering and the intended use of the net
proceeds thereof. Although the Company believes the expectations
reflected in forward-looking statements are reasonable, there can
be no assurances such expectations will prove to be accurate.
Security holders are cautioned that such forward-looking statements
involve risks and uncertainties. Certain factors may cause results
to differ materially from those anticipated by the forward-looking
statements made in this release. Such factors may include, without
limitation, the Company’s ability to satisfy the conditions
contained in the agreement with the initial purchasers with regard
to the offering and the risks, uncertainties and regulatory
developments (1) related to the COVID-19 pandemic, which include
risks and uncertainties related to the current unknown duration of
the COVID-19 pandemic, the impact of governmental responses that
have been, and may in the future be, imposed in response to the
pandemic, including stimulus programs which could adversely impact
lending demand and regulations which could adversely affect the
Company’s ability to continue to fully operate, potential changes
in consumer behavior and shopping patterns which could impact
demand for both the Company’s pawn loan and retail products, the
deterioration in the economic conditions in the United States and
Latin America which potentially could have an impact on
discretionary consumer spending, and currency fluctuations,
primarily involving the Mexican peso and (2) those discussed and
described in (i) the Company’s Annual Report on Form 10-K for the
year ended December 31, 2019 and filed with the Securities and
Exchange Commission (the “SEC”) on February 3, 2020, including the
risks described in Part 1, Item 1A, “Risk Factors” thereof, and
(ii) in the other reports filed with the SEC, including the
Company’s Quarterly Report on Form 10-Q for the periods ended March
31, 2020 and June 30, 2020. Many of these risks and uncertainties
are beyond the ability of the Company to control, nor can the
Company predict, in many cases, all of the risks and uncertainties
that could cause its actual results to differ materially from those
indicated by the forward-looking statements. The forward-looking
statements contained in this release speak only as of the date of
this release, and the Company expressly disclaims any obligation or
undertaking to report any updates or revisions to any such
statement to reflect any change in the Company’s expectations or
any change in events, conditions or circumstances on which any such
statement is based, except as required by law.
About FirstCash
FirstCash is the leading international operator
of pawn stores with more than 2,700 retail pawn locations and
approximately 19,000 employees in 24 U.S. states, the District of
Columbia and four countries in Latin America including Mexico,
Guatemala, El Salvador and Colombia. FirstCash focuses on serving
cash and credit constrained consumers through its retail pawn
locations, which buy and sell a wide variety of jewelry,
electronics, tools, appliances, sporting goods, musical instruments
and other merchandise, and make small consumer pawn loans secured
by pledged personal property.
FirstCash is a component company in both the
Standard & Poor’s MidCap 400 Index® and the
Russell 2000 Index®. FirstCash’s common stock
(ticker symbol “FCFS”) is traded on the Nasdaq,
the creator of the world’s first electronic stock market.
For further information, please contact: |
Gar Jackson |
Global IR Group |
Phone: |
|
(817)
886-6998 |
Email: |
|
gar@globalirgroup.com |
|
|
|
Doug Orr, Executive Vice President and Chief
Financial Officer |
Phone: |
|
(817) 258-2650 |
Email: |
|
investorrelations@firstcash.com |
Website: |
|
investors.firstcash.com |
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