Cash America 2014 Annual Report Download - page 121

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
106
Domestic and Multi-Currency Line
On March 30, 2011, the Company and its domestic subsidiaries as guarantors entered into a Credit
Agreement with a syndicate of financial institutions as lenders. The Credit Agreement was amended on each of
November 29, 2011, May 10, 2013, May 12, 2014, June 13, 2014 and December 23, 2014. The Credit Agreement,
as amended, provides for a Domestic and Multi-currency Line of Credit totaling $280.0 million permitting
revolving credit loans, including a multi-currency subfacility that gives the Company the ability to borrow up to
$50.0 million that may be in specified foreign currencies, subject to the terms and conditions of the Credit
Agreement, and also subject to an accordion feature whereby the revolving line of credit may be increased up to an
additional $100.0 million with the consent of any increasing lenders.
The May and June 2014 amendments to the Credit Agreement permitted (i) Enova to issue debt prior to the
Enova Spin-off , (ii) in conjunction with the Enova Spin-off, the release of Enova and its subsidiaries as guarantors
under the Credit Agreement and (iii) the prepayment of certain outstanding indebtedness. In addition, the December
2014 amendment to the Credit Agreement provides (i) that any acceleration or demand for acceleration, repayment,
redemption or repurchase of or any default or event of default under the 2018 Senior Notes or the 2018 Senior
Notes Indenture, which is referred to as Other Debt Action, proximately caused by the Enova Spin-off will not result
in a default or event of default under the Credit Agreement and that any such Other Debt Action will not be deemed
an event that could reasonably be expected to give rise to or have a material adverse effect under the Credit
Agreement, and (ii) until such time as the Company notifies the Administrative Agent for the Credit Agreement that
the provision described in subsection (i) above is no longer required, the Company is subject to a minimum level of
liquidity as defined in the amendment.
Interest on the Domestic and Multi-currency Line of Credit is charged, at the Company’s option, at either
the LIBOR for one week or one-, two-, three- or six-month periods, as selected by the Company, plus a margin
varying from 2.00% to 3.25% or at the agent’s base rate plus a margin varying from 0.50% to 1.75%. The margin
for the Domestic and Multi-currency Line of Credit is dependent on the Company’s cash flow leverage ratios as
defined in the Credit Agreement. The Company also pays a fee on the unused portion of the Domestic and Multi-
currency Line of Credit ranging from 0.25% to 0.50% (0.38% at December 31, 2014) based on the Company’s cash
flow leverage ratios.
In May 2014, following receipt of aggregate dividend payments of $122.4 million from Enova and receipt
of $431.0 million from Enova for repayment of the Enova Note Receivable, the Company repaid the entire amount
outstanding on the Domestic and Multi-currency Line of Credit. As of December 31, 2014, the Company had no
borrowings outstanding under the Domestic and Multi-currency Line of Credit. As of December 31, 2013,
borrowings under the Company’s Domestic and Multi-currency Line of Credit consisted of three pricing tranches
with maturity dates ranging from three to 31 days. The weighted average interest rate (including margin) on the
Domestic and Multi-currency Line of Credit was 3.30% at December 31, 2013. The Company routinely refinances
such borrowings pursuant to the terms of its Domestic and Multi-currency Line of Credit. Therefore, these
borrowings are considered part of the applicable line of credit and as long-term debt.
Variable Rate Senior Unsecured Notes
When the Company entered into the Credit Agreement, it also entered into a $50.0 million term loan facility
under which it issued the 2018 Variable Rate Notes. The maturity date of the 2018 Variable Rate Notes was
March 31, 2018, but in connection with the proceeds received from Enova’s repayment of amounts owed to the
Company under the Enova Note Receivable, the Company prepaid the entire amount outstanding on the 2018
Variable Rate Notes.