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8-K - FORM 8-K - DFC GLOBAL CORP. | w81924e8vk.htm |
EX-10.1 - EX-10.1 - DFC GLOBAL CORP. | w81924exv10w1.htm |
Exhibit 99.1
Dollar Financial Corp Announces New $200 Million Global Revolving Credit Facility
BERWYN, Pa., Mar 03, 2011 (BUSINESS WIRE)
Dollar Financial Corp (NASDAQ:DLLR News), a leading international diversified
financial services company primarily serving unbanked and under-banked consumers for
over 30 years, today announced a new four-year $200 million global revolving credit
facility, with a potential to further expand the credit facility to $250 million.
Interest payable on borrowings under the new facility, which replaces the Companys
existing $75.0 million revolving credit facility in the United States and C$28.5
million facility in Canada, will be derived from a pricing grid based on the
Companys total leverage ratio, which currently allows borrowings at an interest rate
of LIBOR plus 400 bps, or approximately 4.25%. The new revolving credit facility is
set to mature on March 3, 2015.
Commenting on the agreement, Randy Underwood, the Companys Executive Vice President
and Chief Financial Officer, stated, As compared to our previous credit agreement,
this new larger facility will now allow for multiple tranches of multi-currency
borrowings. This should enable the Company to deploy funds around the world in a more
efficient and expeditious manner to facilitate the continued execution of our
multi-country, multi-product, and multi-channel business expansion and
diversification strategy. The Company continues to maintain an active global
acquisition pipeline and this facility will, in addition to providing for short term
liquidity needs in the normal course of business, provide additional capacity and
enhanced flexibility for pursuing these opportunities.
The new revolving credit facility may be used to initially fund a portion of the
Companys previously announced $195.0 million pending acquisition of Purpose U.K.
Holdings Limited, the parent company of Month End Money (MEM). MEM, which operates
under the brand name PaydayUK, is the leading provider of internet loans in the
United Kingdom through both internet and telephony-based technologies.
About Dollar Financial Corp
Dollar Financial Corp is a leading international diversified financial services
company primarily serving unbanked and under-banked consumers and small business
owners for over 30 years. Through its retail storefront locations as well as by other
means, such as via the Internet, the Company provides a range of consumer financial
products and services in seven countries (Canada, the United Kingdom, the United
States, the Republic of Ireland, Sweden, Finland and Poland) to consumers who, for
reasons of convenience and accessibility, purchase some or all of their financial
services from the Company rather than from banks and other financial institutions.
The Companys products, principally its short-term consumer loans, check cashing
services, secured pawn loans and gold buying services, provide customers with
immediate
access to cash for living expenses or other episodic needs. The Company
also offers high-value ancillary services, including Western Union money order and
money transfer products, electronic tax filing, reloadable VISA(R) and MasterCard(R)
debit cards, foreign currency exchange, and other services. In addition, through its
branded Military Installment Loan and Education Services, or MILES(R) program, the
Company provides fee based services to enlisted military personnel applying for loans
to purchase new and used vehicles that are funded and serviced under an exclusive
agreement with a major third-party national bank.
At December 31, 2010, the Companys global retail operations consisted of 1,226
locations, including 1,126 company-operated financial services stores and 100
franchised and agent locations, conducting business primarily under the names Money
Mart(R), Money Shop(R), Insta-Cheques(R), The Check
Cashing Store(R), Sefina(R) and MoneyNow(R) in
Canada, the United Kingdom, the United States, the Republic of Ireland, Sweden,
Finland and Poland. For more information, please visit the Companys website at
www.dfg.com.
Forward Looking Statement
This news release contains forward looking statements, including, among other things,
statements regarding the following: pending or recent acquisitions; the Companys
future results, growth, guidance and operating strategy; the global economy; the
effects of currency exchange rates on reported operating results; the developing
regulatory environment in Canada, the U.K., the United States, and other countries;
the impact of future development strategy, new stores and acquisitions; litigation
matters; expected financing initiatives; stock splits; and the performance of new
products and services. These forward looking statements involve risks and
uncertainties, including risks related to: the regulatory environments; current and
potential future litigation; the identification of acquisition targets; the
consummation of announced pending acquisitions, the integration and performance of
acquired stores and businesses; the performance of new stores; the impact of debt
financing transactions; the results of certain ongoing income tax appeals; and the
effects of new products and services on the Companys business, results of
operations, financial condition, prospects and guidance; and uncertainties related to
the effects of changes in the value of the U.S. Dollar compared to foreign
currencies. There can be no assurance that the Company will attain its expected
results, successfully consummate announced pending acquisitions, successfully
integrate any of its acquisitions, obtain acceptable financing, or attain its
published guidance metrics, or that ongoing and potential future litigation or the
various FDIC, Federal, state, Canadian, U.K. or foreign legislative or regulatory
activities affecting the Company or the banks with which the Company does business
will not negatively impact the Companys operations. A more complete description of
these and other risks, uncertainties and assumptions is included in the Companys
filings with the Securities and Exchange Commission, the Companys annual reports and
Forms 10-Q and 10-K. You should not place any undue reliance on any forward-looking
statements. The Company disclaims any obligation to update any such factors or to
publicly announce results of any revisions to any of the forward-looking statements
contained herein to reflect future events or developments.
SOURCE: Dollar Financial Corp
Dollar Financial Corp
Financial Dynamics
Julie Prozeller / Amy Pesante
212-850-5600
Financial Dynamics
Julie Prozeller / Amy Pesante
212-850-5600