By Paul A. Harris
Portland, Ore., Dec. 8 – ACE Cash Express, Inc. priced an upsized $350 million issue of 12% five-year senior secured notes (B-) at 98.5 to yield 12.412% on Friday, according to an informed source.
The issue size was increased from $290 million.
The coupon came on top of coupon talk. The reoffer price came in the middle of price talk, which specified an original issue discount of 1 point to 2 points.
Credit Suisse Securities (USA) LLC was the lead bookrunner. Jefferies LLC was the joint bookrunner.
Proceeds will be used to refinance the company's 11% senior secured notes due 2019. The additional proceeds resulting from the $60 million upsizing of the deal will be used to fund a distribution to shareholders.
The notes become callable on Dec. 15, 2019 at 106. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.
Irving, Texas-based ACE Cash Express is financial services retailer focused on serving unbanked and underbanked consumers.
| Issuer: | ACE Cash Express, Inc.
|
| Amount: | $350 million, increased from $290 million
|
| Maturity: | Dec. 15, 2022
|
| Securities: | Senior secured notes
|
| Lead bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunner: | Jefferies LLC
|
| Co-manager: | WoodRock Securities
|
| Coupon: | 12%
|
| Price: | 98.5
|
| Yield to worst: | 12.412%
|
| Spread: | 1,026 bps
|
| First call: | Dec. 15, 2019 at 106
|
| Special call: | Issuer may redeem 10% of notes annually at 103 during the non-call period
|
| Equity clawback: | 40% at 112 until Dec. 15, 2019
|
| Trade date: | Dec. 8
|
| Settlement date: | Dec. 15
|
| Rating: | S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 12% coupon, including 1-2 points OID
|
| Marketing: | Roadshow
|
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