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TheStreet Open House

Cash Store Financial Prices Offering Of Senior Secured Notes

Stocks in this article: CSFS

EDMONTON, Jan. 24, 2012 /PRNewswire/ - The Cash Store Financial Services Inc. ("Cash Store Financial" or the "Company") (TSX: CSF; NYSE: CSFS) is pleased to announce that it has priced its previously announced private offering (the "Offering") of C$132,500,000 aggregate principal amount of 11½% senior secured notes (the "Notes"), which represents an increase of C$7,500,000 in aggregate principal amount of Notes to the size of the offering contemplated in the Company's press release of January 12, 2012. The Notes will be issued at a price of 94.608% and will mature on January 31, 2017.

The Notes will be fully and unconditionally guaranteed by all of the Company's subsidiaries (the "Guarantors"). The Notes are not convertible into equity of the Company. The Company intends to use the gross proceeds of the Offering to purchase loans receivable assets from the Company's current third-party lenders, for general corporate purposes and to pay fees and expenses. The sale of the Notes is expected to close on January 31, 2012, subject to customary closing conditions.

Gord Reykdal, Chairman and CEO commented: "This transaction will benefit the Company and will allow us to transition to a direct lending model. The financial flexibility offered by the Notes will provide the Company with a new source of funding to support future loan growth associated with the maturing of our branches and our expansion plans."

The Notes will be offered and sold in Canada on a private placement basis pursuant to certain prospectus exemptions and will not be registered or qualified by prospectus under any securities legislation. The Notes will be offered and sold in the United States only to qualified institutional buyers in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to persons other than U.S. persons in reliance on Regulation S under the Securities Act. The offer and sale of the Notes will not be registered under the Securities Act and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

The Notes will be subject to resale and transfer restrictions in accordance with applicable securities legislation.

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