Dollar Financial unit to issue $350M of debt

AP News
Posted: Dec 01, 2009 4:55 PM

Dollar Financial Corp. on Tuesday said its Canadian subsidiary plans to issue $350 million of debt in a private offering.

The payday lender said the unit, National Money Mart Co., will offer the senior notes to qualified institutional buyers. The offering is expected to take place this month.

The company plans to use a portion of the proceeds to finance its previously announced acquisition of Military Financial Services LLC.

It will also prepay $100 million of its existing term loans. The payment is related to a separately announced plan to amend its senior credit facilities and extend their maturity dates.

Dollar Financial shares closed Tuesday's regular trading up 34 cents at $24.76, after hitting a 52-week high of $25.50 during the session. In aftermarket electronic trading, shares slipped 44 cents.