Advisors
Jefferies LLC served as exclusive financial advisor and King & Spalding LLP served as legal counsel to CURO in this transaction. Troutman Pepper served as legal counsel to Heights Finance in this transaction.
Investor Conference Call
CURO and Heights Finance will hold a joint conference call to discuss the transaction at 8:00 a.m. ET today. The call will include a discussion of the transaction followed by a question and answer session with management from CURO and Heights Finance. You may access the call at 1-833-953-2430 (1-412-317-5759 for international callers). Please ask to join the CURO Group Holdings call. To access the live webcast, interested parties are invited to visit the investor relations section of the Company’s website at http://ir.curo.com/. A supplemental investor presentation providing more details on Heights Finance and the acquisition is available in the “Events & Presentations” section of CURO’s Investors website at https://ir.curo.com/events-and-presentations.
Archive: A taped replay of this call will be available until December 1, 2021, at 8:00 a.m. ET. You may access the conference call replay at 1-877-344-7529 (1-412-317-0088 for international callers). The replay access code is 10162144. An archived version of the webcast will be available on the CURO Investors website for one year.
Refinancing of Non-Recourse Canada SPV Financing Facility
Last week, CURO signed a refinancing of its non-recourse Canada SPV financing facility. The incumbent – Waterfall Asset Management – provided an attractive renewal and extension that lowered the all-in cost by 200 basis points, expanded the total capacity, including accordion, from C$250 million to C$450 million, extended maturity by three years to August 2026, increased the advance rate from 80% to 90%, expanded eligibility to include Flexiti’s non-prime loans and added the ability to securitize from the facility.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements include statements regarding projections, estimates and assumptions about the impact of the transaction on us, including our belief that the acquisition will accelerate our transition into long-term, higher balance and lower rate credit products; solidify our position as a full spectrum non-prime consumer lender in the U.S.; enhance our overall growth, profitability and risk profiles; grow our combined operations; and lower cost debt capital; Heights’ estimated adjusted earnings before taxes; timing of the closing of the transaction and funding sources. In addition, words such as “guidance,” “estimate,” “anticipate,” “believe,” “forecast,” “step,” “plan,” “predict,” “focused,” “project,” “is likely,” “expect,” “intend,” “should,” “will,” “confident,” variations of such words and similar expressions are intended to identify forward-looking statements. The ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of our control, that could cause actual results to differ materially from those in the forward-looking statements, including: the inability of the parties to successfully or timely consummate the proposed transaction, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed transaction; failure to realize the anticipated benefits of the proposed transaction; risks relating to the uncertainty of projected financial information; the effects of competition on the combined company’s future business; our ability to attract and retain customers; market, financial, political and legal conditions; the impact of COVID-19 pandemic or any other global event on the combined company’s business and the global economy; our dependence on third-party lenders to provide the cash we need to fund our loans and our ability to affordably access third-party financing; errors in our internal forecasts; our level of indebtedness; our ability to integrate acquired businesses; actions of regulators and the negative impact of those actions on our business; our ability to protect our proprietary technology and analytics and keep up with that of our competitors; disruption of our information technology systems that adversely affect our business operations; ineffective pricing of the credit risk of our prospective or existing customers; inaccurate information supplied by customers or third parties that could lead to errors in judging customers’ qualifications to receive loans; improper disclosure of customer personal data; failure of third parties who provide products, services or support to us; any failure of third-party lenders upon whom we rely to conduct business in certain states; disruption to our relationships with banks and other third-party electronic payment solutions providers as well as other factors discussed in our filings with the Securities and Exchange Commission. These projections, estimates and assumptions may prove to be inaccurate in the future. These forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. There may be additional risks that we presently do not know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not
place undue reliance on forward-looking statements as a prediction of actual future results. We undertake no obligation to update, amend or clarify any forward-looking statement for any reason.
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