ACE Cash Express Increases Bank Credit Facility, Improves Pricing and Extends the Maturity Date
01 Marzo 2006 - 2:55PM
PR Newswire (US)
DALLAS, March 1 /PRNewswire-FirstCall/ -- ACE Cash Express, Inc.
(NASDAQ:AACE) today announced that it has amended its existing bank
credit facility to extend the maturity date, increase the facility
size and improve pricing. The new facility became effective on
February 28, 2006. Under the amended bank facility the new
commitments increase total availability from $200 million to $275
million, including a $200 million working capital facility and a
$75 million seasonal facility available during each tax season, and
the maturity date is extended from June 30, 2008 to December 31,
2010. The increased capacity will provide additional capital and
enhance ACE's ability to execute its growth strategy of opening new
stores and opportunistically pursuing acquisitions. The pricing on
the facility was also reduced to LIBOR plus 200 basis points from
LIBOR plus 225 basis points and can be further reduced to LIBOR
plus 175 basis points based upon the company's leverage ratio.
William S. McCalmont, Executive Vice President & Chief
Financial Officer commented, "We are pleased to complete this
amendment of our bank facility, and we believe the additional
capacity, extended maturity, and improved pricing reflects the
confidence that our bank group has in ACE. This represents another
key step that we have taken to strengthen our capital structure and
increase our financial flexibility as we expand the ACE network and
our service offerings." Wells Fargo Bank is the Administrative
Agent and Co-Lead Arranger, JPMorgan Chase Bank is the Syndication
Agent and Co-Lead Arranger, and KeyBank, Union Bank of California
and U.S. Bank are the Co-Documentation Agents. Other lenders in the
facility include Amegy Bank, The Bank of Nova Scotia, National City
Bank, RZB Finance, LLC, Texas Capital Bank, Allied Irish Banks,
p.l.c., LegacyTexas Bank, and North Fork Bank. About ACE ACE Cash
Express, Inc. is a leading retailer of financial services,
including check cashing, short-term consumer loans, bill payment
and prepaid debit card services, and the largest owner, operator
and franchisor of check cashing stores in the United States. As of
December 31, 2005, ACE had a network of 1,520 stores in 34 states
and the District of Columbia, consisting of 1,301 company-owned
stores and 219 franchised stores. ACE focuses on serving consumers,
many of who seek alternatives to traditional banking relationships
in order to gain convenient and immediate access to financial
services. ACE's website is found at http://www.acecashexpress.com/
. Forward Looking Statements This release contains certain
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements are
generally identified by the use of words such as "expect,"
"anticipate," "estimate," "believe," "intend," "plan," "target,"
"goal," "should," "would," and terms with similar meanings.
Although ACE believes that the current views and expectations
reflected in these forward-looking statements are reasonable, these
views and expectations, and the related statements, are inherently
subject to risks, uncertainties, and other factors, many of which
are not under ACE's control and may not even be predictable. Any
inaccuracy in the assumptions, as well as those risks,
uncertainties and other factors could cause the actual results to
differ materially from these in the forward-looking statements.
These risks, uncertainties, and factors include, but are not
limited to matters described in ACE's reports filed with the
Securities and Exchange Commission, such as: * ACE's relationships
with Republic Bank & Trust Company, First Bank of Delaware,
Travelers Express and its affiliates, and its bank lenders; * ACE's
relationships with providers of services or products offered by ACE
or property used in its operations; * federal and state
governmental regulation of check cashing, short-term consumer
lending and related financial services businesses; * any impact to
ACE's earnings derived from the RBT loans offered by Republic Bank
& Trust Company and the FBD loans offered by First Bank of
Delaware at ACE's stores in Texas, Pennsylvania and Arkansas from
the Federal Deposit Insurance Corporation's Revised Guidelines for
Payday Lending, which took effect on July 1, 2005 and require that
such banks develop procedures to ensure that a payday loan is not
provided to any customer with payday loans outstanding from any
lender for more than 3 months in the previous 12 months; * any
litigation; * theft and employee errors; * the availability of
adequate financing, suitable locations, acquisition opportunities
and experienced management employees to implement ACE's growth
strategy; * increases in interest rates, which would increase ACE's
borrowing costs; * the fragmentation of the check cashing industry
and competition from various other sources, such as banks, savings
and loans, short-term consumer lenders, and other similar financial
services entities, as well as retail businesses that offer services
offered by ACE; * the terms and performance of third-party services
offered at ACE's stores; and * customer demand and response to
services offered at ACE's stores. ACE expressly disclaims any
obligation to update or revise any of these forward-looking
statements, whether because of future events, new information, a
change in ACE's views or expectations, or otherwise. ACE makes no
prediction or statement about the performance of its common stock.
DATASOURCE: ACE Cash Express, Inc. CONTACT: William S. McCalmont,
Executive Vice President & CFO, +1-972-753-2314, or , or
Douglas Lindsay, Vice President of Finance, +1-972-753-2342, or ,
both of ACE Cash Express, Inc. Web site:
http://www.acecashexpress.com/
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