World Acceptance amends revolver, gets $75 million subordinated loan

By Sara Rosenberg

New York, Sept. 21 - World Acceptance Corp. amended and restated its revolving credit facility, extending the maturity to Aug. 31, 2012 and revising the size to $225 million, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

In addition, the amendment allowed the company to get a $75 million five-year non-revolving subordinated credit facility with Wells Fargo Preferred Capital.

Pricing on the subordinated facility is Libor plus 487.5 basis points, and there is an unused fee that can range from 25 bps to 37.5 bps.

Proceeds from the subordinated facility were used to repay existing debt and for general working capital purposes.

Also, the amended revised the consolidated net worth and fixed-charge coverage ratios.

The amendment and restatement and the subordinated facility were completed on Sept. 17.

Bank of Montreal is the administrative agent on the deal.

World Acceptance is a Greenville, S.C.-based small-loan consumer finance business.

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