Populus Financial extends tender offer for 12% notes through Oct. 4

By Wendy Van Sickle

Columbus, Ohio, Aug. 9 – Populus Financial Group Inc. has extended the tender offer for its $315 million 12% senior secured notes due 2022, according to a news release.

The offer will now expire at 11:59 p.m. ET on Oct. 4, pushed back from 11:59 p.m. ET on Aug. 9.

As of 5 p.m. ET on Aug. 8, tenders had been submitted for $294,304,000 principal amount, or 93.43%, of the outstanding notes.

The company previously said that as of 5 p.m. ET on July 31 it had received sufficient tenders and consents to pass a concurrent consent solicitation, with the tally at that time standing at $292.31 million principal amount, or 92.8%, of the notes.

Populus had asked noteholders for consents to eliminate substantially all of the restrictive covenants and some of the default provisions in the indenture governing the notes and to release all of the collateral securing the notes.

The company needed consents representing at least a majority of the outstanding principal amount of the notes to adopt the proposed amendments and 66 2/3% of the outstanding principal amount of notes to complete the proposed collateral release.

The tender offer began July 15.

On July 18, the company extended the withdrawal deadline to 5 p.m. ET on July 31 and the withdrawal rights reinstatement date to Nov. 4 from Oct. 31.

The withdrawal rights reinstatement date is the date after which, if the expiration time is extended beyond such date, holders who have previously tendered notes and delivered consents will be allowed to withdraw their previously tendered notes and revoke their consents.

Holders who tendered their notes with consents prior to the withdrawal deadline will receive the $1,000 total consideration and will be eligible to receive an extended term premium of $10 per $1,000 principal amount of notes if the expiration time is extended to a date later than Oct. 4.

The total consideration equals $950 plus a $50 early tender premium for each $1,000 principal amount of notes tendered by the early tender deadline, 5 p.m. ET on July 26.

Holders will also receive accrued interest up to but excluding the settlement date, which is now expected to be Oct. 8.

D.F. King & Co. Inc. (800 864-1460, 212 269-5550 or ace@dfking.com) is the tender agent and information agent.

The financial services company is based in Dallas. It was formerly known as ACE Cash Express, Inc.

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