Cash America (CSH) Increases Facility by $100M; to Acquire Seven-Store Chain in AZ for Up to $50M

Cash America International, Inc. (NYSE: CSH) has amended its existing credit agreement to increase the amount available under its line of credit to $380 million, which is an increase of $100 million. While the final maturity date of the credit agreement is March 31, 2015, the $100 million increase under the line of credit will be available until the earlier of May 29, 2013 or the closing of the initial public offering of common stock of the Company’s wholly-owned subsidiary, Enova International, Inc., when the line of credit will return to the $280 million level. The pricing terms and financial ratio requirements of the existing credit agreement, as well as the eight commercial lenders in the bank group under the existing credit agreement, all remain the same. The Company will use the increased line of credit availability to pursue strategic objectives including the completion of potential acquisitions, the repurchase of shares of stock under its current repurchase authorization and for other working capital and general purposes.

Cash America also announced today that it intends to acquire substantially all of the assets of a seven-store chain of pawn lending locations currently owned and operated as franchised Cash America SuperPawn locations by a franchisee of the Company. The seven franchised stores are located in the Tucson, Flagstaff and Yuma Arizona markets, and the acquisition will enable the Company to expand its company-owned pawnshop presence in Arizona from 21 shops operating in the Phoenix metropolitan area to 28 shops operating throughout Arizona. The acquisition is expected to increase the balance of pawn loans by approximately $10 million, and total consideration for the acquisition is expected to be between $46 and $50 million, depending on potential adjustments following the completion of due diligence. The final closing will occur following receipt of applicable licensing and regulatory approvals, however, Cash America expects to assume the economic benefits of these pawnshops by operating them under a management arrangement commencing on or about December 1, 2011. Management expects the transaction to be immediately accretive to earnings.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• DA Davidson Reiterates Buy Rating on Box, Inc. (BOX) on Secular Tailwinds for Demand
• S&P 500 may pull back before midterms, but Citi says buy the dip