Dollar Financial completes credit facility amendment and extension

By Sara Rosenberg

New York, Dec. 1 - Dollar Financial Corp. received lender consent to amend and extend the maturities on some of its bank debt, according to a news release.

Lenders representing approximately 88% of the company's revolvers and approximately 85% of its term loans have agreed to extend the maturity to December 2014.

The company's bank debt is comprised of about $100 million revolving facilities in the United States and Canada, $286.2 million of term loans in Canada and $83.5 million of term loans in the United Kingdom.

Extended revolver and term loan debt is priced at Libor plus 500 basis points with a 2% Libor floor. Non-extended debt is priced at Libor plus 375 bps with a 2% Libor floor.

If the company's corporate credit rating is lower than B2 from Moody's Investors Service or B from Standard & Poor's at any time during the 30 days after the date of effectiveness of the amendment, all the spreads will increase by an additional 100 bps.

The extension is subject to, prior to Oct. 30, 2012, the company's outstanding 2.875% senior convertible notes due 2027 being reduced to an amount less than or equal to $50 million.

Also, the amendment revises covenants so as to increase operating flexibility.

As part of the amendment, the company must pay down $100 million of its term loans on a pro rata basis.

The amendment and restatement is expected to become effective with the consummation of a senior note offering by National Money Mart Co., the company's indirect wholly owned Canadian subsidiary.

Credit Suisse and Wells Fargo are the joint lead arrangers and bookrunners on the deal, and U.S. Bank is the documentation agent and the syndication agent.

Dollar Financial is a Berwyn, Pa.-based financial services company primarily serving unbanked and under-banked consumers.

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