Item 7.01 Regulation FD Disclosure.
On September 21, 2021, World Acceptance Corporation (the
“Company”) commenced an offering of $300,000,000 aggregate principal amount of its senior notes due 2026 in a private offering (the “Offering”) in reliance upon
an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), subject to market and other conditions. The Company intends to use the proceeds from the offering of the notes to repay a portion of
its outstanding borrowings under its senior secured revolving credit facility (the “revolving credit facility”) and to pay related transaction fees and expenses. Proceeds applied to repay a portion of the outstanding borrowings under the
revolving credit facility will not reduce the lenders’ commitments thereunder. Amounts applied to repay a portion of the outstanding borrowings under the revolving credit facility may be reborrowed, subject to the terms of the revolving credit
facility, as amended. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Also on September 21, 2021, the Company disclosed certain financial information relating to the Company to prospective investors that
supplements or updates certain prior disclosures of the Company. Pursuant to Regulation FD, the Company is furnishing herewith such financial information in this Form 8-K below.
Select Preliminary Unaudited Financial Results for the Two Months Ended August 31, 2021
Set forth in the following paragraph are selected anticipated, unaudited, preliminary financial results for the Company for the two
months ended August 31, 2021 that are derived from information currently available to the Company’s management. The Company has not yet completed its financial closing procedure for this period, and these estimates should be considered provisional
and subject to change. Accordingly, the financial summaries provided below are not and should not be construed as a comprehensive or final statement of the Company’s financial results for the two months ended August 31, 2021, and the Company’s
actual results may differ materially from these estimates for a variety of reasons, including, but not limited to, the completion of financial closing procedures, final adjustments, further analysis and other developments that may arise between now
and the time the financial results are finalized. These estimates should not be viewed as a substitute for full financial statements prepared in accordance with GAAP, and these estimates are not necessarily indicative of the results to be achieved
for the two months ended August 31, 2021 or any other period.
Neither the Company’s independent auditor nor any other independent accountants have compiled, examined or performed any procedures with
respect to the preliminary information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its attainability, and assume no responsibility for, and disclaim any association with, the
preliminary information.
The Company preliminarily anticipates the following financial results for the two months ended August 31, 2021:
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Loan book growth in the two months ended August 31, 2021 was approximately $130.5 million, resulting in an ending consumer loan receivable of
$1.35 billion. For comparison, loan growth in the two months ended August 31, 2019, the comparable period preceding the pandemic, was approximately $44.6 million.
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The annualized net charge-off rate for the two months ended August 31, 2021 was 10.0%, down from 15.2% during the corresponding period in 2020.
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As of August 31, 2021 the average APR of our portfolio declined to 49.7%.
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The information contained in this Item 7.01 of this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be or be deemed to be incorporated by reference in any filing under the Securities Act or
the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.