EZCorp completes $230 million offering

Jul 3, 2014
Austin American Statesman

Austin-based payday lending and pawnshop chain EZCorp Inc. said Wednesday it has completed a $230 million offering of convertible debt, which netted the company $223.1 million


EZCorp in June said it priced $200 million of the offering, which was issues in senior five-year notes are due in 2019. Purchasers were given an option to buy up to an additional $30 million in senior notes, and EZCorp said on Wednesday that those options were exercised, bringing the total offering to $230 million


EZCorp said it used $119 million of the net proceeds to pay off existing debt, and used $11.9 million to repurchase 1 million shares of its common stock in privately negotiated transactions. After funding “the net cost of certain hedge and warrant transactions,” the company said the remaining would be about $70.9 million, and that it would use that for general corporate purposes


Founded in 1974, EZCorp has grown into one of the nation’s largest pawn shop operators and into one of Austin’s largest publicly traded companies


EZCorp had revenue of $1.1 billion for its fiscal 2013. EZCorp operates more than 1,400 pawnshops and financial services stores in the United States, Mexico, Canada and the United Kingdom. The company has about 300 employees in the Austin area, and about 7,500 worldwide


EZCorp had revenues of $260 million in its fiscal second quarter, down 3 percent from the same quarter in 2013

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