FirstCash plans new debt financing for American First purchase

By Sara Rosenberg

New York, Nov. 1 – FirstCash Inc. plans on getting new debt financing to help fund its acquisition of American First Finance Inc., according to a news release.

Under the agreement, American First is being bought for about $1.17 billion, consisting of roughly 8.05 million shares of common stock and $406 million in cash, subject to a net debt adjustment. In addition, the seller has the potential to receive up to an additional $300 million pursuant to an earnout if American First meets certain adjusted EBITDA targets through the first half of 2023.

Other funds for the cash portion of the acquisition will come from cash on hand.

Closing is expected in late 2021 or early first quarter of 2022, subject to customary conditions and regulatory approvals.

Jefferies LLC is acting as lead financial adviser to FirstCash. Stephens Inc. is acting as financial adviser to American First.

FirstCash is a Fort Worth-based operator of retail pawn stores. American First is a Dallas-based technology-driven virtual lease-to-own and retail finance provider focused on underserved, non-prime customers.

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