EZCorp greenshoe ups 2.875% convertibles to $143.75 million

By Susanna Moon

Chicago, July 6 – EZCorp Inc. said the underwriters fully exercised their $18.75 million over-allotment option on the company’s recent sale of 2.875% convertible senior notes due 2024.

The greenshoe exercise brings the total deal size to $143.75 million, according to a company update on Thursday.

As reported, EZCorp priced $125 million of the 2.875% convertibles at par on June 29 with an initial conversion premium of 30%.

The deal came cheaper than the 1.875% to 2.375% yield talk but richer than the 20% to 25% premium talk.

UBS Securities LLC and Jefferies LLC are the joint bookrunners for the Rule 144A sale.

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

The initial conversion price is $10.00 per share, equal to an initial conversion rate of 100 shares per $1,000 of notes.

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

The convertibles become redeemable on July 6, 2021, subject to a 130% stock price hurdle.

In connection with the deal, EZCorp entered into convertible note hedge and warrant transactions with several options counterparties

Proceeds will be used to repay borrowings under a senior secured credit facility and for general corporate purposes. The company is also using the funds to retire $35 million of its outstanding 2.125% cash convertible senior notes due 2019. Also, proceeds could be used for acquisitions.

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

© 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.