FirstCash Holdings has expanded and extended its unsecured revolving credit facility, increasing committed capacity to $1.055 billion from $700 million, a jump of $355 million, or about 51%.
The maturity date on the facility has been pushed out to August 2031 from August 2029, adding two years of committed funding. The company also raised its permitted net leverage ratio to as high as 3.5 times consolidated EBITDA for the full term of the agreement.
The amended facility includes direct borrowings in British pounds sterling of up to a $500 million U.S. dollar equivalent, and the unused fee was reduced.
Chief Executive Rick Wessel said the expanded facility gives the company five years of long-term committed capital to support growth in the U.S. and abroad. He pointed specifically to funding the expected Ramsdens pawn acquisition in the U.K., which has shareholder approval and is awaiting final regulatory approval, as well as other acquisitions in the pipeline.
FirstCash said the upsized syndicate includes two new banks, while most existing lenders increased their commitments. The company said the larger facility will support accretive acquisitions as well as cash dividends and share repurchases. As a result of these announcements, the company's shares have moved -1.35% on the market, and are now trading at a price of $216.245. Check out the company's full 8-K submission here.
