DFC offers 12% PIK notes in exchange for 10˝% secured notes due 2020

By Susanna Moon

Chicago, June 27 – DFC Global Corp. said wholly owned subsidiary DFC Finance Corp. began a private offer to exchange its $800 million principal amount of outstanding 10˝% senior secured notes due 2020.

In exchange, the company is offering up to $800 million principal amount of DFC Finance’s newly issued 12% senior secured pay-in-kind toggle notes due 2020 plus additional new notes to be issued for accrued interest, according to a company announcement.

The total exchange value will be par of $1,000 principal amount for notes tendered for exchange by 5 p.m. ET on July 11, the early tender date.

Holders who tender for exchange after the early deadline will receive $970 of new notes per $1,000 principal amount.

The exchange offer will end at 5 p.m. ET on July 26.

Tendered notes may be withdrawn until the early deadline.

The company also will pay accrued interest.

For the new notes, DFC Finance may elect to pay up to 91.667% of the interest by increasing the principal amount of the outstanding new notes or by issuing additional new notes and will pay at least 8.333% of the interest entirely in cash, the release noted.

Holders must be qualified institutional buyers under Rule 144A or those defined as non-U.S. persons under Regulation S.

Global Bondholder Services Corp. (866 470-4500, 212 430-3774 or gbsc-usa.com/eligibility/DFC) is the information agent.

DFC is a non-bank provider of alternative financial services based in Malvern, Pa.

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