ACE Cash upsizes offering of five-year secured notes to $350 million; pricing Friday

By Paul A. Harris

Portland, Ore., Dec. 8 – ACE Cash Express, Inc. upsized its offering of five-year senior secured notes (B-) to $350 million from $290 million, according to an informed source.

The additional $60 million of proceeds will be used to fund a distribution to shareholders, the source said. The rest of the proceeds will be used to refinance the company's 11% senior secured notes due 2019.

The Rule 144A and Regulation S for life offering is set to price on Friday.

Credit Suisse Securities (USA) LLC is the lead bookrunner. Jefferies LLC is the joint bookrunner.

The notes become callable after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes also feature a two-year 40% equity clawback at par plus the coupon and a 101% poison put.

Irving, Texas-based ACE Cash Express is financial services retailer focused on serving unbanked and underbanked consumers.

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