By Paul Deckelman
New York, Sept. 26 - Ace Cash Express Inc. priced $175 million of eight-year senior notes Tuesday at par to yield of 10¼%, syndicate sources said.
The bonds priced at a spread of 568 basis points over Treasuries.
Bear Stearns & Co. was the bookrunner for the Rule 144A deal.
The new notes are non-callable for the first four years and carry a Caa1 rating from Moody's Investors Service and a B- from Standard & Poor's.
The company - a Dallas-based provider of retail check-cashing services - plans to use the proceeds from the deal and funds from a new $400 million credit facility to help finance the acquisition of the company by JLL Partners Inc., which will provide $178 million of equity financing as part of the deal.
| Issuer: | Ace Cash Express
|
| Amount: | $175 million
|
| Security type: | Rule 144A senior notes
|
| Maturity: | Oct. 1, 2014
|
| Book-runner: | Bear Stearns & Co.
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Spread: | 568 basis points over 4¼% Treasury due 2014
|
| Call status: | Non-callable for first four years, then standard call schedule
|
| Settlement: | Oct. 5
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
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