Cash America 2014 Annual Report Download - page 123

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
108
2018 Senior Notes at a purchase price equal to 101% of the aggregate principal amount of 2018 Senior Notes
repurchased plus accrued and unpaid interest, if any, as of the date of repurchase.
During the year ended December 31, 2014, the Company repurchased $103.5 million aggregate principal
amount of the 2018 Senior Notes for aggregate cash consideration of $107.2 million plus accrued interest. In
connection with these purchases, the Company recorded a loss on early extinguishment of debt of approximately
$6.0 million, which is included in “Loss on early extinguishment of debt” in the consolidated statements of income.
2029 Convertible Notes
On May 19, 2009, the Company completed the offering of the 2029 Convertible Notes. During 2014, the
Company notified the holders of its outstanding 2029 Convertible Notes that on May 15, 2014, it would redeem all
outstanding 2029 Convertible Notes, and as a result of this notification, all holders of outstanding 2029 Convertible
Notes elected conversion on May 15, 2014. Pursuant to the terms of the 2029 Convertible Notes, the Company
elected to pay cash for the $44.4 million of principal amount of all converted notes outstanding at that date, plus
accrued interest, and to re-issue 747,085 shares of common stock held in treasury for the amount in excess of
principal owed to noteholders as a result of the net-share settlement provisions in the Indenture that governs the
2029 Convertible Notes. In accordance with ASC 470, no gain or loss was recorded in the consolidated statements
of income for the conversion. Additionally, the Company’s consolidated shareholders’ equity was not changed as a
result of this activity.
During the three months ended March 31, 2014 and prior to the conversion of the 2029 Convertible Notes,
the Company repurchased $58.6 million principal amount of the 2029 Convertible Notes in privately-negotiated
transactions for aggregate cash consideration of $89.5 million plus accrued interest. In connection with these
purchases, the Company recorded a loss on early extinguishment of debt of approximately $1.5 million, which is
included in “Loss on early extinguishment of debt” in the consolidated statements of income, and a $30.3 million
decrease to additional paid-in capital, which is included in “Repurchases and conversion of convertible debt” in the
consolidated statements of equity.
Contractual interest expense recognized for the 2029 Convertible Notes was $1.3 million and $5.9 million
for the year ended December 31, 2014 and 2013, respectively. Additionally, interest expense related to non-cash
amortization of the discount represented $0.7 million and $3.3 million for the year ended December 31, 2014 and
2013, respectively.