By Cristal Cody
Prospect News, Jan. 24 - Cash Store Financial Services Inc. priced an upsized C$132.5 million of 11½% five-year senior secured notes at 94.608 to yield 13% late Tuesday, according to a bond source.
The deal was upsized from C$125 million.
The notes due Jan. 31, 2017 (B3/B/) were talked to price with an 11½% to 12% coupon to yield 12¾% to 13%.
Imperial Capital and Canaccord Genuity Corp. were the bookrunners.
The deal was distributed in Canada on a private placement basis and under Rule 144A and Regulation S.
The issue has a make-whole call at 50 bps over the government benchmark before July 31, 2014.
The notes may be redeemed in whole or in part on or after July 31, 2014 at 103.042; on or after Jan. 31, 2015 at 102.091; on or after July 31, 2015 at 101.127; on or after Jan. 31, 2016 at 100.194 and on or after July 31, 2016 at par.
The notes have 2.5 years of call protection and feature a 35% 2.5-year equity clawback and a 101% poison put.
Proceeds will be used to purchase loans and receivable assets from the company's third-party lenders and for general corporate purposes.
Edmonton, Alta.-based Cash Store Financial provides broker and short-term lending services.
| Issuer: | Cash Store Financial Services Inc.
|
| Amount: | C$132.5 million
|
| Maturity: | Jan. 31, 2017
|
| Securities: | Senior secured notes
|
| Bookrunners: | Imperial Capital and Canaccord Genuity Corp.
|
| Coupon: | 11½%
|
| Price: | 94.608
|
| Yield: | 13%
|
| Call features: | Make-whole redemption at 50 plus the government benchmark before July 31, 2014, then callable at 103.042, 102.091, 101.127, 100.194 and par until July 31, 2016
|
| Equity clawback: | 35% for 2.5 years
|
| Poison put: | 101%
|
| Pricing date: | Jan. 24
|
| Settlement date: | Jan. 31
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A, Regulation S, Canada private placement
|
| Price talk: | 11½% to 12% coupon to yield 12¾% to 13%
|
| Marketing: | Roadshow
|
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