FirstCash draws $290 million under facility for Cash America merger

By Tali Rackner

Norfolk, Va., Sept. 2 – FirstCash, Inc., formerly First Cash Financial Services, Inc., borrowed $290 million under its amended and restated credit agreement on Thursday in connection with its merger with Cash America International, Inc., according to an 8-K filing with the Securities and Exchange Commission.

Proceeds from the drawdown were used to repay the outstanding borrowings and accrued interest under Cash America’s credit facility, which was terminated in connection with the merger; repay the outstanding borrowings and accrued interest under FirstCash’s previous credit facility; and pay debt issuance costs and merger-related fees and expenses.

During the third quarter, the company said it expects to borrow about $75 million more under the facility to fund the cash-out of the Cash America restricted stock units in connection with the merger and some other contractual severance liabilities and pay other merger-related fees.

Subsequent to these borrowings, FirstCash said it would have roughly $35 million of borrowing capacity available under the facility.

First Cash is a retail-based pawn store operator based in Arlington, Texas. Cash America is a Fort Worth-based specialty financial services provider.

On Sept. 1, First Cash Financial and Cash America completed a previously reported merger agreement in which they combined in an all-stock merger of equals. The combined company is named FirstCash, Inc. and has more than 2,000 retail pawn store across four countries.

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