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Community Choice completes credit facility refinancing


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Community Choice completes credit facility refinancing

Community Choice Financial Inc. on Sept. 6 completed a refinancing of its existing $47.0 million revolving credit facility.

Victory Park Management LLC acted as administrative agent and certain of Victory Park's affiliates acted as lenders with regards to the credit facility.

The company also entered into a $45.0 million revolving credit agreement with certain affiliates of Victory Park and Community Choice Financial Issuer LLC, a wholly owned subsidiary of the company, as lenders, and GLAS Trust Co. LLC, as administrative agent.

The revolving credit agreement matures Sept. 6, 2020, and bears an interest rate of 9.00% per year.

Under the agreement, a repayment of $3.0 million will be made to Victory Park on Oct. 31. Also, the agreement requires the company to engage in a deleveraging transaction on or before Nov. 30, subject to approval at the direction of the majority funders of the new facility, whereby at least two-thirds of the senior debt will be converted to equity in the company and/or junior debt.

Also, Community Choice Financial Issuer entered into an indenture with Community Choice Financial Holdings LLC, a wholly owned subsidiary of the company, as guarantor, and Computershare Trust Co. NA, as trustee and collateral agent, for the issuance of $42.0 million of 9.00% senior secured notes due Sept. 6, 2020. The proceeds from the notes were used to fund $42.0 million in loans to the company in accordance to the revolving credit agreement.

The company also issued $10.0 million in aggregate principal amount of its 2019 notes pursuant to the indenture governing the 2019 notes and as part of the termination and satisfaction of the existing credit facility.

Additionally, CCFI Funding II LLC, a non-subsidiary guarantor of the company, entered into the third amendment to the loan and security agreement with Ivy Funding Nine LLC, as lender, which increased the capacity under the facility from $60.0 million to $65.0 million, with $1.5 million of the additional amount subject to lender discretion. The amendment, among other things, increased the administrative fee to 1.2% per annum and increased the interest rate to 17.0% per annum on principal amounts over $60.0 million.