Cash America International, Inc. (NYSE: CSH) today announced the pricing
of its offering of $100 million aggregate principal amount of 5.25%
Convertible Senior Notes due 2029 in a private offering to qualified
institutional buyers pursuant to Rule 144A of the U.S. Securities Act of
1933, as amended (the "Securities Act").
The sale of the notes is expected to close on May 19, 2009. The notes
were priced at 100% of their principal amounts. Cash America also
granted the initial purchasers of the notes a 30-day option to purchase
up to an additional $15 million aggregate principal amount of additional
notes to cover over-allotments, if any.
The notes will bear interest at a rate of 5.25% per year, payable
semi-annually on May 15 and November 15 of each year, commencing
November 15, 2009. The notes will be convertible, in certain
circumstances, at an initial conversion rate of 39.2157 shares per
$1,000 aggregate principal amount of notes (which is equivalent to a
conversion price of approximately $25.50), subject to adjustment
upon the occurrence of certain events, into either, at Cash
America’s election: (i) shares of common stock or (ii) cash up to their
principal amount and shares of its common stock in respect of the
remainder, if any, of the conversion value in excess of the principal
amount. This represents a conversion premium of approximately 27.5%
relative to the closing price of Cash America’s common stock on May 13,
2009.
Cash America may, at its option, redeem some or all of the notes on or
after May 15, 2014 solely for cash. Holders of the notes will have the
right to require Cash America to repurchase some or all of the
outstanding notes, solely for cash, on May 15, 2014, May 15, 2019 and
May 15, 2024. The notes are senior unsecured obligations of Cash America.
Cash America intends to use a portion of the net proceeds of the
offering to repay existing indebtedness, including outstanding balances
under its revolving credit facility. Any remaining portions will be used
for general corporate purposes.
The notes have not been and will not be registered under the Securities
Act or applicable state securities laws, 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 applicable state
securities laws. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy the notes, nor shall there
be any sale of the notes in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful.
Cash America International, Inc.
Thomas A. Bessant, Jr.,
817-335-1100
