trending Market Intelligence /marketintelligence/en/news-insights/trending/SVU5Uwv_HaZwxFuSDfDfeA2 content esgSubNav
In This List

EZCORP completes Grupo Finmart sale to Alpha Holding


Commercial Banking: June 22nd Edition


Commercial Banking Newsletter June Edition - 2022


Street Talk | Episode 96: Considering recession risks, prospects that the Fed achieves a 'soft landing'

Case Study

Actions to Reduce Emissions at an Asian Financial Services Firm

EZCORP completes Grupo Finmart sale to Alpha Holding

EZCORPInc. has completed its sale of Grupo Finmart to Alpha Holding SA de CV at a $50million base price.

EZCORP received $25.3 million in cash from the sale. A sumof $6.4 million was set aside for working capital, cash and non-operating debtadjustments. Minority interest holders who held 6% of Grupo Finmart received$2.7 million, and $11.5 million was placed in a separate escrow account to bereleased to EZCORP within five days of the deal's closing. Another $4.1 millionis to be held in escrow for up to 18 months subject to finalization offinancial performance and indemnification claims.

EZCORP also received promissory notes for about $91 millionin principal.

The notes include $60 million of intercompany debt owed toEZCORP guaranteed by Alpha Holding and payable to EZCORP in annual installmentsover three years. Principal of $52 million is payable in U.S. dollars at a 4%annual interest rate. The remaining $8 million is payable in Mexican pesos at arate of 7.5%.

The remaining $31 million represents existing Grupo Finmartthird-party debt that EZCORP paid off at closing and is scheduled to be repaidto EZCORP in installments between closing and December 2017.