12
Apr

DFC Global (Payday Loans, Pawn) Borrowing $200 million at 3.25% senior convertible notes due 2017.

DFC Global -DLLR- is getting their hands on $200 million dollars at 3.25%! Yeah, the notes have a convertible feature with a 21% premium but geez Louise! My clients and I have to pay 2% – 3% A MONTH for capital to put on the street.

From the Press Release:

The notes will be unsecured, senior obligations of the Company and will pay interest semi-annually at a rate of 3.25%. Prior to October 15, 2016, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day preceding the maturity date. Upon conversion, holders will receive cash up to the principal amount and shares of the Company’s common stock in respect of any excess conversion amount. The initial conversion rate for the notes is 46.8962 shares of common stock per $1,000 principal amount of the notes, which is equal to a conversion price of approximately $21.32 per share, representing a 29.0% conversion premium based on the closing price of the Company’s common stock of $16.53 per share on April 10, 2012. The notes mature on April 15, 2017.

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