Correction: EZCorp’s $100 million convertibles to price Wednesday

A report in the Prospect News Convertibles Daily for May 9 gave incorrect timing for EZCorp’s sale of convertible notes. A corrected version follows.

Portland, Me., May 8 – EZCorp Inc. plans to price $100 million of seven-year convertible notes after the market close on Wednesday with price talk for a coupon of 2% to 2.5% and an initial conversion premium of 20% to 25%.

Morgan Stanley & Co. Inc. is the sole bookrunner for the Rule 144A deal, which carries a greenshoe of $15 million.

The notes are non-callable for four years and then may be redeemed subject to a 130% hurdle with a make-whole. There are no put options.

The notes are contingently convertible until Nov. 1, 2024, according to a company press release.

Conversion will be settled in cash, shares or a combination of both at the company’s option, the release said.

Proceeds will be used for general corporate purposes including acquisitions. EZCorp has entered into non-binding letters of intent to acquire pawnshops in Latin America.

EZCorp is an Austin, Texas-based provider of pawn loans and operator of pawn shops in the United States, Canada and Latin America.

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