EZCorp greenshoe exercise increases convertible sale to $230 million

By Tali Rackner

Norfolk, Va., July 2 – Underwriters for EZCorp, Inc.’s 2.125% cash convertible senior notes due 2019 exercised their over-allotment option in full, adding an additional $30 million, according to a press release.

The company priced $200 million of the five-year convertibles on June 18.

As previously reported, the Rule 144A deal was sold via Morgan Stanley & Co. LLC as the bookrunner. Proceeds of about $18.5 million were used to pay for the call spread, and about $11.9 million of proceeds was used to repurchase 1 million shares of outstanding class A non-voting common stock.

The company used $119 million of proceeds to repay and terminate its revolving credit facility. Remaining proceeds will be used for general corporate purposes.

Austin, Texas-based EZCorp operates pawn stores and short-term consumer loan stores.

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