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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV