FirstCash Holdings said its FirstCash credit facility has been increased to $1.055 billion from $700 million, while its maturity has been extended from August 2029 to August 2031.
The unsecured revolving facility amendment raises the company’s permitted net leverage ratio to as much as 3.5 times consolidated EBITDA for the full term. It also lowers the facility’s unused fee and permits direct borrowings in British pounds sterling of up to the equivalent of $500 million.
FirstCash Credit Facility Supports U.K. Acquisition Plans
FirstCash said the expanded FirstCash credit facility is intended to support its global growth strategy, including the expected acquisition of U.K. pawn operator Ramsdens. The transaction has been approved by Ramsdens shareholders and remains subject to final regulatory approval, according to FirstCash.
The company said the amended facility adds two banks to its lending syndicate, while most existing bank partners increased their commitments. FirstCash also cited potential acquisitions, cash dividends and share repurchases among its strategic priorities.
Fort Worth, Texas-based FirstCash operates more than 3,300 pawn stores across the United States, Latin America and the United Kingdom. Its pawn operations account for about 90% of net revenue, with the balance generated by its AFF customer payment-solutions subsidiary.
