QC Holdings stockholders to receive special dividend

By Lisa Kerner

Charlotte, N.C., Dec. 7 - QC Holdings, Inc.'s recently completed $95 million recapitalization of its balance sheet will result in a $2.50-per-share special cash dividend to its shareholders on Dec. 27. The record date for the dividend is Dec. 18.

QC amended its prior credit facility to provide borrowing capacity of $95 million through a $50 million term loan and a $45 million revolving credit facility.

The special cash dividend will be funded through the $50 million term loan. The company will immediately draw $12 million under the $45 million revolving credit facility.

QC's common stock will start trading on an ex-dividend basis starting Dec. 14 under Nasdaq Global Market rules.

"This special cash dividend provides a meaningful return of investment to our stockholders, while optimizing the company's capital structure given its historical ability to generate strong cash flow," chief financial officer Douglas E. Nickerson said in a company news release.

"The leveraged recapitalization of the company provides a term loan to fund the special cash dividend, as well as a reasonable level of available borrowing capacity to accommodate our growth strategy."

Based in Overland, Kan., QC provides payday loans in 24 U.S. states.

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