ACE Cash lifts tender payment for 10¼% notes, pushes back deadlines

By Susanna Moon

Chicago, Jan. 27 - ACE Cash Express, Inc. said it will now pay $1,034.17 for each $1,000 principal amount of 10¼% senior notes due Oct. 1, 2014 tendered by the new consent deadline of 5 p.m. ET on Feb. 1.

The total payment was increased from par and includes a $50.00 consent payment.

ACE also said it will not call any notes remaining after the tender offer before Oct. 1, 2011.

The offer will now continue until midnight ET on Feb. 9, extended from Feb. 7. It began on Jan. 10. The consent date was originally Jan. 24 before being extended to 5 p.m. ET on Jan. 26.

Holders who tender after the consent date will receive $984.17 per $1,000 of notes, or the total payment less the consent premium.

The company also will pay accrued interest to but not including the payment date.

As of 5 p.m. ET on Jan. 26, about $57.9 million of the notes had been validly tendered, representing 33% of the outstanding principal amount of the notes. That figure is unchanged from 5 p.m. ET on Jan. 25.

The company is soliciting consents to eliminate most of the restrictive covenants and events of default contained in the indenture.

Holders may not tender without delivering consents and vice versa.

ACE previously said it planned to use the proceeds from a proposed $350 million debt financing, together with available cash, to fund the tender offer.

The offer and solicitation are conditioned on the closing of the debt financing as well as the receipt of the needed consents to amend the notes.

The dealer manager is Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 325-5912). The depositary and information agent is D.F. King & Co., Inc. (800 967-4607).

ACE Cash is an Irving, Texas-based provider of retail check-cashing services.

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