EZCORP dives on convertible debt deal

EZCORP

07/12/2022 19:20

** Shares of pawn store operator EZCORP Inc  EZPW.O  dive
19.6% to $8.49, on course for biggest one-day drop since Feb 4,
2020, as co seeks capital
    ** Co offering privately $175 mln convertible bonds (CBs)
due 2029  urn:newsml:reuters.com:*:nBw6xdMVWa
    ** EZPW expects to use net offering proceeds to repurchase
portion of its existing 2.875% CBs and 2.375% CBs maturing in
2024 and 2025, respectvely
    ** Co had roughly $600 mln market cap based on stock's Tues
close, per Refinitiv
    ** On Nov 16, co reported fiscal Q4 rev growth of 21% yr/yr
to $233 mln and net income of $7.3 mln, as pawn loans
outstanding hit record high  urn:newsml:reuters.com:*:nBw9RLWwka
    ** Even with decline on the session, EZPW shares up ~15% YTD
    ** All 3 analysts covering EZPW rate stock "strong buy" with
$12 median PT - Refinitiv
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))