Cash America gets new $280 million revolver, $50 million term loan

By Angela McDaniels

Tacoma, Wash., April 5 - Cash America International, Inc. entered into a $330 million credit facility due March 31, 2015 that includes a $280 million revolving credit facility and a $50 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is the administrative agent, JPMorgan Chase Bank, NA is the syndication agent, and KeyBank, NA is the documentation agent. Wells Fargo Securities, LLC and J.P. Morgan Securities LLC were the joint lead arrangers and joint lead bookrunners.

Revolver borrowings can be made in U.S. dollars, euros, British pounds sterling, Canadian dollars, Australian dollars, Mexican pesos or any other foreign currency approved by the administrative agent.

The interest rate for the term loan is Libor plus 350 basis points. The initial interest rate for the revolver is Libor plus 275 bps, and the initial commitment fee is 37.5 bps.

The margin on the revolver ranges from 200 bps to 325 bps, and the commitment fee is 25 bps to 50 bps.

The interest rate for any revolver borrowings made in Mexican pesos will be based on market rates for Mexican peso deposits plus a margin.

The company must make quarterly amortization payments of $2.08 million on the term loan from March 31, 2012 through Dec. 31, 2014 and repay the remaining $25 million at maturity.

Under the facility's covenants, the company must maintain a leverage ratio of no more than 3 to 1 and a fixed-charge coverage ratio of at least 1.75 to 1.

The company drew $137 million at closing to refinance its prior credit facilities. The proceeds of the new facility will also be used for working capital, to make acquisitions and for other corporate purposes.

In connection with the new facility, the company entered into a standby letter-of-credit agreement with Wells Fargo for up to $20 million.

Cash America is a Fort Worth-based owner and operator of pawnshops.

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