First Cash expands revolver to $210 million, extends its term to 2020

By Wendy Van Sickle

Columbus, Ohio, Nov. 3 – First Cash Financial Services, Inc. expanded its unsecured revolving credit facility to $210 million and extended its term to Oct. 30, 2020, according to a Tuesday press release.

Previously, the revolver had capacity of $160 million.

Wells Fargo Bank, NA is the administrative agent. LegacyTexas Bank was added as a lender under the amendment, and First Cash subsidiaries FCFS SC, Inc. and FCFS NC, Inc. were added as guarantors.

The amended facility continues to bear interest at Libor plus a fixed spread of 250 basis points, but the amendment sets a minimum Libor rate of 0%.

The company has $78.5 million outstanding on the credit facility and has availability of $131.5 million under the amended terms.

During the first nine months of the year, First Cash invested $16 million in capital expenditures, primarily for 32 new stores, acquired 30 stores for $33 million and repurchased $32 million of stock, according to the release. These expenses were funded by drawing under the revolver, as well as by cash on hand and current cash flows from operations.

“The expanded and extended credit facility, combined with the company’s operating cash flows, provides the resources needed to support continued asset growth, store expansion and stock repurchases, and provides further strategic flexibility,” Rick Wessel, chief executive officer of First Cash, said in the release.

First Cash is a retail-based pawn store operator based in Arlington, Texas.

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