ACE outlines structure on $400 million credit facility

By Sara Rosenberg

New York, July 10 - ACE Cash Express Inc. came out with details on the structure of its proposed $400 million credit facility that is being obtained with its leveraged buyout by JLL Partners Fund V, L.P., according to a Prem14A filed with the Securities and Exchange Commission Monday.

Bear Stearns is the lead arranger, bookrunner, administrative agent and syndication agent on the deal.

The facility will consist of a $200 million five-year asset-based revolver, a $75 million seasonal asset-based revolver that will be available on each Dec. 1 to April 15 and a $125 million seven-year term loan B.

The revolver is expected to carry an interest rate of Libor plus 175 basis points and the term loan B is expected to carry an interest rate in the area of Libor plus 300 to 400 bps, the filing said.

The revolver will have a $25 million accordion feature.

Under the acquisition agreement, JLL is purchasing ACE for $30.00 per share in cash. The transaction, which is subject to ACE shareholder approval, government approvals and other customary conditions, is expected to close in the fourth quarter.

Other LBO financing will come from a proposed issuance of $175 million of eight-year senior unsecured notes and $178.8 million of equity. Bear Stearns will act as the bookrunning manager and underwriter, lead initial purchaser and/or lead placement agent for the notes.

ACE is an Irving, Texas, retailer of financial services, including check cashing, short-term consumer loans, bill payment and prepaid debit card services.

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