ACE sets Thursday launch for $400 million credit facility

By Sara Rosenberg

New York, Sept. 8 - ACE Cash Express Inc. has scheduled a bank meeting for Thursday to launch its proposed $400 million credit facility, according to a market source.

Bear Stearns is the lead arranger, bookrunner, administrative agent and syndication agent on the deal.

The facility consists of a $200 million five-year asset-based revolver, a $75 million seasonal asset-based revolver that will be available on each Dec. 1 to April 15 and a $125 million seven-year term loan B.

According to previous filings with the Securities and Exchange Commission, the revolvers are expected to carry an interest rate of Libor plus 175 basis points and the term loan B is expected to carry an interest rate in the area of Libor plus 300 to 400 bps.

The revolver has a $25 million accordion feature.

Proceeds will be used to help fund the leveraged buyout of Ace by JLL Partners Fund V, LP for $30.00 per share in cash.

Other LBO financing will come from a proposed issuance of $175 million of eight-year senior unsecured notes and $178.8 million of equity. Bear Stearns will act as the bookrunning manager and underwriter, lead initial purchaser and/or lead placement agent for the notes.

ACE is an Irving, Texas, retailer of financial services, including check cashing, short-term consumer loans, bill payment and prepaid debit card services.

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