DFC Global amends financial covenants under Wells Fargo facility

By Marisa Wong

Madison, Wis., June 26 - DFC Global Corp. amended some financial and operating covenants under its second amended and restated credit agreement dated March 3, 2011 and also added a new liquidity covenant, according to an 8-K filing with the Securities and Exchange Commission.

Financial covenants were amended as follows:

• The consolidated leverage ratio as of the last day of any period of four consecutive fiscal quarters is permitted to exceed 4.75 to 1 for the quarters ending in the period from June 30 to March 31, 2014, 4.5 to 1 for the quarter ending June 30, 2014 and 3.625 to 1 for the quarters ending Sept. 30, 2014 and after; and

• The consolidated fixed-charge coverage ratio for any period of four consecutive fiscal quarters is permitted to be less than 1.4 to 1 for any quarter ending in the period from June 30 to March 31, 2014, 1.5 to 1 for the quarter ending June 30, 2014 and 1.75 to 1 for quarters ending Sept. 30, 2014 and after.

The new liquidity covenant permits the consolidated liquidity as of the last day of any calendar month to be less than $50 million.

In addition, the amendment prohibits the payment of cash dividends.

The company entered into the third amendment to its credit agreement with Wells Fargo Bank, NA as administrative agent on June 25.

DFC Global is formerly known as Dollar Financial Corp. The financial services company is based in Berwyn, Pa.

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