EZCorp to price $125 million of seven-year convertible notes

By Stephanie N. Rotondo

Seattle, June 27 – EZCorp Inc. plans to sell $125 million of convertible senior notes due 2024 via a Rule 144A offering, the company said in a press release on Tuesday.

There is an $18.75 million over-allotment option.

Conversions will be settled in cash, common stock, or a combination of the two, at the company’s option.

The notes are contingently convertible prior to Jan. 1, 2024. After that date, holders can convert the bonds at any time.

Proceeds will be used to repay outstanding amounts under a senior secured credit facility and for general corporate purposes. The company may also use the funds to retire a portion of its outstanding 2.125% cash convertible senior notes due 2019 and for potential acquisitions.

In its release, EZCorp noted that it is “in various levels of discussion regarding a number of acquisition opportunities in the U.S., Canada and Latin America, and has entered into a non-binding letter of intent to acquire pawnshops in Latin America.”

The company added that completion of such deals is not guaranteed.

EZCorp is an Austin, Texas-based provider of pawn loans in the United States and Mexico.

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