June 28, 2017 / 4:01 PM / 4 months ago

BUZZ-Ezcorp: Worst day in over 3 years ahead of convertible offering

** Pawn lender Ezcorp tumbles to bottom of S&P 1500 index as co gets set to price its convertible financing after market close

** EZPW down >14 pct, lowest since early Apr, breaches 50-DMA. Stock on track for its biggest one-day pct drop since Nov 2013 on 3.7x the 30-day avg volume

** Co offering privately $125 mln of convertible senior notes due 2024

** To use proceeds to repay $50 mln drawn on revolver and terminate facility; may repay portion of 2.125% convertible notes due 2019 ($230m principal outstanding)

** Ezcorp says it is in various levels of discussion regarding number of acquisition opportunities in the U.S., Canada, and entered non-binding letter of intent to buy pawnshops in Latin America; though says no assurance potential acquisitions will be completed

** Bookrunners UBS and Jefferies marketing notes with 1.875%-2.375% coupon, 20%-25% convert premium

** Today’s decline extends EZPW’s YTD loss to 26.5 pct. Compares to S&P Small Cap Cons Finance sub index’s 21 pct advance

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