DFC, Sterling enter into secured asset-based revolver with Jefferies

By Jennifer Chiou

New York, June 13 – DFC Global Corp., Sterling Holdings Ltd. and Sterling Mid-Holdings Ltd. with DFC Finance Corp. as the initial borrower entered into a senior secured asset-based revolving credit facility with Jefferies Finance LLC as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The $125 million five-year revolving credit facility may be increased to up to $230 million.

The facility is in connection with DFC Global’s acquisition by an affiliate of Lone Star Funds. The transaction was completed June 13, and DFC Global is now a privately held company.

The credit agreement has a sublimit of $33 million, which may be increased to up to $48 million, for the issuance of letters of credit.

Borrowings may be denominated in U.S. dollars, British pounds, euros or Canadian dollars, and interest will accrue at Libor plus a margin of 400 basis points.

The financial maintenance covenants under the new facility are a minimum fixed-charge coverage ratio test that initially requires a ratio of greater than or equal to 1.00 to 1.00 and steps up to 2.00 to 1.00 by March 31, 2017 and a maximum total net leverage ratio test that initially requires a ratio of less than or equal to 7.00 to 1.00 and steps down to 3.75 to 1.00 by Sept. 30, 2016.

DFC Global is a Berwyn, Pa.-based financial services company with a focus on primarily unbanked and under-banked consumers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.