EZCORP plans $300M senior notes offering

AUSTIN, Texas - EZCORP, Inc. (NASDAQ:EZPW), a prominent pawn transaction provider with a market capitalization of $783 million and annual revenue of $1.18 billion, announced its intention to offer $300 million in senior notes due 2032 in a private placement, subject to market and other conditions. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.91, indicating robust financial health. These senior unsecured obligations will be guaranteed by certain wholly owned domestic subsidiaries, with potential future guarantees by other subsidiaries.

The company aims to allocate part of the net proceeds to repay its 2.375% Convertible Senior Notes due in 2025 at maturity, with the remainder for general corporate purposes. This offering targets qualified institutional buyers in the U.S. and certain non-U.S. persons internationally.

The offering and sale of these securities have not been registered under the Securities Act of 1933 or applicable state securities laws, and will not be available for sale in the U.S. without registration or an exemption from registration requirements.

EZCORP’s forward-looking statements included in the announcement are based on current expectations and are subject to uncertainties including operating and liquidity risks, regulatory changes, market conditions, and litigation. The company has no obligation to update these statements in the face of future events or operational changes.

Founded in 1989, EZCORP has become a leading pawn service provider in the U.S. and Latin America, also dealing in pre-owned and recycled merchandise. Traded on NASDAQ with the ticker symbol EZPW, EZCORP is part of the S&P 1000 and Nasdaq Composite Indexes.

This news is based on a press release statement from EZCORP, Inc.

In other recent news, EZCORP reported a 7% increase in fourth-quarter sales, surpassing Canaccord Genuity’s expectations, although slightly below consensus estimates. Pawn loans outstanding grew significantly by 13% to $274.8 million, while adjusted earnings per share and EBITDA exceeded projections by 13% and 14%, respectively. Canaccord Genuity responded by raising the price target for EZCORP to $22.00 and maintaining a Buy rating on the stock. In another development, EZCORP terminated its planned acquisition of 53 Mexican pawn shops from Presta Dinero, though it continues to focus on expansion in Mexico through new store openings and strategic acquisitions. Roth/MKM initiated coverage on EZCORP with a Buy rating and a price target of $16.00, noting the company’s strong financial returns and potential market undervaluation. The firm highlighted the upcoming maturity of May 2025 convertible notes as a possible catalyst for the stock. Additionally, EZCORP appointed Michael Croney as its new Chief Accounting Officer, effective February 2025, as part of its leadership strengthening efforts. This appointment follows the announcement of Robert J. Hicks transitioning to Deputy Chief Accounting Officer until his departure.

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