Dollar Financial tenders for 9¾% notes due 2011

By Jennifer Chiou

New York, Sept. 14 - Dollar Financial Corp. announced its wholly owned subsidiary, Dollar Financial Group, Inc., launched a cash tender offer for any and all of its $200 million of 9¾% senior notes due 2011.

The Berwyn, Pa., franchisor of check-cashing stores is also soliciting consents to proposed amendments to the note indenture to eliminate most of the restrictive covenants and certain events of default.

The tender offer expires at 5 p.m. ET on Oct. 12.

The company said it will pay an amount based on the basis of a yield to the first redemption date for the notes equal to the yield to maturity of the 3% Treasury due Nov. 15, 2007 and 50 basis points.

Dollar Financial added it will also pay accrued interest up to but excluding the payment date.

Those who tender by 5 p.m. ET on Sept. 27, the consent deadline, will receive a $30.00 per $1,000 principal amount of notes consent payment, which is included in the payout.

Holders who tender must deliver consents.

The tender is subject to conditions including the receipt of enough consents to amend the indenture and Dollar Financial raising funds from a new financing.

Credit Suisse Securities (USA) LLC is the dealer manager (800 820-1653 or call collect 212 538-0652). Morrow & Co., Inc. is the information agent (800 607-0088 or call collect 203 658-9400).

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