EDMONTON, Jan. 31, 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 closed its previously announced private offering (the "Offering") of C$132,500,000 aggregate principal amount of 11½% senior secured notes (the "Notes"). The Notes were issued at a price of 94.608% and will mature on January 31, 2017.
Gord Reykdal, Chairman and CEO commented: "This transaction will benefit the Company and will allow us to transition to a direct lending model at a reduced fixed cost of capital. We are pleased to note the strong investor interest demonstrated by the oversubscription to the issue. This inaugural bond issue in the U.S. and Canadian markets provides the company with access to a new source of funding to support further growth. As of today we have transitioned 100% of the outstanding accounts receivable in the regulated provinces onto our balance sheet."
The Notes are fully and unconditionally guaranteed by all of the Company's subsidiaries. The Company used a portion of the net proceeds of the Offering to purchase loans receivable assets from the Company's current third-party lenders concurrently with the closing of the Offering and will use the balance of the net proceeds for general corporate purposes and to pay fees and expenses.
The Notes were 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 were 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 are subject to resale and transfer restrictions in accordance with applicable securities legislation.