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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.