FirstCash Holdings, Inc. ("FirstCash") has announced an increase in the size of its long-term, unsecured bank credit facility from $640 million to $700 million. The company has also extended the maturity date of the facility from August 2027 to August 2029. This amendment and extension provide FirstCash with an additional $60 million in capacity and five years of significant long-term committed capital.
The amended facility allows for an increased permitted leverage ratio of up to 3.25 times adjusted EBITDA for the full term of the agreement, while the other financial covenants remain substantially unchanged.
Rick Wessel, the Chief Executive Officer of FirstCash, emphasized that the additional capacity and extension of the credit facility will support the company's continued growth and expansion in both the U.S. and Latin America. He also highlighted that the amended facility is expected to provide further capacity to support ongoing shareholder payouts through cash dividends and share repurchases.
FirstCash is the leading international operator of pawn stores, with over 3,000 retail pawn stores in the U.S. and Latin America. These stores buy and sell a wide variety of merchandise and make small non-recourse pawn loans secured by pledged personal property. The pawn segments in the U.S. and Latin America account for approximately 80% of segment earnings, with the remainder provided by its wholly owned subsidiary, Aff, which offers lease-to-own and retail finance payment solutions for consumer goods and services.
FirstCash's common stock (ticker symbol "FCFS") is traded on the NASDAQ. For additional information regarding FirstCash and the services it provides, visit the company's websites located at http://www.firstcash.com and http://www.americanfirstfinance.com. Following these announcements, the company's shares moved 1.4%, and are now trading at a price of $114.67. If you want to know more, read the company's complete 8-K report here.
