Ace Cash talks $290 million five-years secured notes with 12% coupon including discount

By Paul A. Harris

Portland, Ore., Dec. 7 – ACE Cash Express, Inc. talked its $290 million offering of five-year senior secured notes (B-) with a 12% coupon, including 1 point to 2 points of original issue discount.

Books close at 11 a.m. ET on Friday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Credit Suisse Securities (USA) LLC is the lead bookrunner. Jefferies LLC is the joint bookrunner.

The notes become callable after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes also feature a two-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Irving, Texas-based financial services provider plans to use the proceeds to refinance its 11% senior secured notes due 2019.

ACE Cash Express is focused on serving unbanked and underbanked consumers.

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