First Cash obtains $400 million revolver for merger with Cash America

By Tali Rackner

Norfolk, Va., July 26 – First Cash Financial Services, Inc. entered into a $400 million five-year revolving bank credit facility in connection with its merger with Cash America International, Inc., according to a press release.

There is an uncommitted $100 million accordion feature.

Interest will be equal to Libor plus 250 basis points.

The facility will become effective upon the completion of the proposed merger.

The facility includes eight participating commercial lenders led by Wells Fargo Bank, NA.

The companies also announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, with respect to the proposed business combination, has expired, concluding antitrust review of the transaction under the HSR Act and satisfying one of the conditions to the closing of the pending transaction.

First Cash is a retail-based pawn store operator based in Arlington, Texas. Cash America is a Fort Worth-based specialty financial services provider.

The companies entered into a definitive merger agreement April 28 in which they will combine in an all-stock merger of equals. The combined company will be named FirstCash, Inc. and will have more than 2,000 retail pawn store across four countries, the release said.

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