Enova gets 8½% noteholders’ consent to easing restricted payments

By Wendy Van Sickle

Columbus, Ohio, Oct. 4 – Enova International, Inc. announced the success of its solicitation of consents from holders of its outstanding 8½% senior notes due 2025, which was announced Sept. 26 and sought to amend the indenture’s restricted payments covenant to increase Enova’s ability to make restricted payments in connection with share repurchases and for other corporate purposes.

By the expiration of the offer at 5 p.m. ET on Oct. 3 holders of a majority in aggregate principal amount of the outstanding notes had delivered their consents, which was sufficient to pass the amendments, according to a company news release.

The amendments will amend the indenture to provide the company with additional restricted payments capacity in an amount that does not exceed $200 million; so long as, immediately after giving pro forma effect to the making of such restricted payment, the debt to tangible common equity ratio of the company does not exceed 4.5 to 1.0.

Debt is balance sheet reported long-term debt. Tangible common equity is balance sheet reported total common stockholders’ equity less goodwill and intangible assets.

As of June 30, the company’s debt to tangible common equity ratio was about 2.3 to 1.0. The additional capacity would be in addition to any available capacity under the “consolidated net income” restricted payments builder basket in the indenture.

A supplemental indenture effecting the changes was entered on Wednesday and is now effective.

The company will pay each holder who validly delivered and did not revoke a consent a cash payment of $15 per $1,000 principal amount of notes for which consents were granted. Settlement is expected to occur promptly.

Jefferies LLC (212 778-8348) is the solicitation agent.

Ipreo LLC (888 593-9546) is the information agent and tabulation agent.

Enova International is an online financial services provider. The company is based in Chicago.

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