FirstCash Holdings Inc. has amended and increased its revolving credit facility to $1.055 billion from $700 million, extending the maturity date to August 2031. The amended agreement raises the permitted net leverage ratio to 3.5 times consolidated EBITDA for the full term and allows direct borrowings in British pounds sterling up to $500 million in USD equivalent.
The facility also reduces the unused fee and adds two new banks to the syndicate. The company, which operates more than 3,300 retail pawn stores in the U.S., Latin America, and the U.K., stated that the additional capacity will support its growth and expansion plans.
Chief Executive Officer Rick Wessel said the expanded facility will help fund the pending acquisition of U.K.-based Ramsdens, subject to final regulatory approval, as well as other acquisitions in the company’s pipeline. Ramsdens shareholders have already approved the deal. The pawn operations of FirstCash account for approximately 90% of its net revenue, with the remainder generated by its AFF subsidiary, which provides customer payment solutions at retailers’ points of sale.
FirstCash is listed on the NASDAQ under the ticker FCFS and is included in the Standard & Poor's MidCap 400 Index and the Russell 2000 Index.
