Cash America repays, terminates $232 million facility on merger

By Tali Rackner

Norfolk, Va., Sept. 2 – Cash America International, Inc., repaid about $232 million under its existing credit facility dated March 30, 2011 and terminated the facility on Thursday in connection with its merger with First Cash Financial Services, Inc., according to an 8-K filing with the Securities and Exchange Commission.

When it entered into the existing credit agreement, the company also entered into a standby letter-of-credit agreement for the issuance of up to $20 million of letters of credit. In connection with the merger, all $5.96 million outstanding letters of credit were transferred to First Cash’s line of credit facility, and the letter-of-credit-facility was terminated.

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

On Sept. 1, First Cash 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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