EZCORP Announces Closing of Private Offering of $300,000,000 of Senior Notes Due 2032
Rhea-AI Summary
EZCORP (NASDAQ: EZPW) has successfully closed a private offering of $300 million senior notes due 2032. The notes, offered to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, will bear interest at 7.375% per annum, payable semiannually starting October 1, 2025.
The company secured net proceeds of approximately $292.5 million after deducting initial purchasers' discounts and estimated offering expenses. EZCORP plans to use about $103.4 million to repay its outstanding 2.375% Convertible Senior Notes Due 2025 at maturity, with excess proceeds allocated for general corporate purposes.
The notes are senior unsecured obligations, fully guaranteed by certain wholly owned domestic subsidiaries, with maturity set for April 1, 2032, unless redeemed or repurchased earlier.
Positive
- Successful raising of $292.5 million in net proceeds
- Strategic refinancing of existing debt
- Long-term debt maturity extended to 2032
Negative
- Higher interest rate of 7.375% compared to existing 2.375% notes
- Increased debt burden with $300 million new notes
Insights
EZCORP's $300 million senior notes offering represents a significant debt restructuring that extends the company's maturity profile from 2025 to 2032. The transaction yields net proceeds of
The financial implications are mixed. Positively, EZCORP has eliminated near-term refinancing risk and potentially removed dilution concerns associated with the convertible notes. The substantial additional capital (
However, the
The transaction's ultimate value hinges on management's deployment of the additional capital. The return on these funds must exceed the
AUSTIN, Texas, March 28, 2025 (GLOBE NEWSWIRE) -- EZCORP, Inc. (NASDAQ: EZPW) (the “Company”), a leading provider of pawn transactions in the United States and Latin America, announced today the closing of its private offering of
The Notes bear interest at a rate of
The net proceeds from the offering were approximately
The Notes were offered in a private placement, solely to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, or outside the United States to certain non-U.S. persons in reliance on Regulation S under the Securities Act. The offer and sale of the Notes and related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This announcement contains certain forward-looking statements. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the offering of the Notes or intended use of proceeds thereof, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates will, should or may occur in the future, including future capital expenditures and future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors and current or future litigation. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
ABOUT EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index.
Contact:
Email: Investor_Relations@ezcorp.com
Phone: (512) 314-2220
FAQ
What is the interest rate and maturity date for EZPW's new senior notes?
How much did EZCORP (EZPW) raise in net proceeds from the senior notes offering?
How will EZCORP use the proceeds from its $300 million senior notes offering?
Who are the eligible buyers for EZPW's new senior notes?
