Nicholas Financial, Inc. (NICK) - NASDAQ
  • Dec. 18, 2013, 8:10 AM
    • Prospect Capital (PSEC) agrees to acquire specialty finance company Nicholas Financial (NICK) for $16 per share. The purchase is expected to close in April 2014 and the Nicholas board has approved the deal.
    • For about $199M, Prospect will be acquiring 100% of Nicholas' common stock and any outstanding options on the common. Nicholas' debt amounts to $127M, putting the total deal value at about $326M.
    • After the close, Prospect will recap the business using a new $250M line of credit. This will repay Nicholas' existing debt and return a portion of Prospect's capital. Following, Prospect will have a net investment of about $139M.
    • After the close, Prospect expects Nicholas to pay out about all of its net income to Prospect on an ongoing basis. For the year ended September, Nicholas generated pre-tax income of $31.8M. Prospect generated about $220M.
    • PSEC +0.7% premarket, NICK closed at $15.28 last night.
    | Dec. 18, 2013, 8:10 AM | 4 Comments
Company Description
Nicholas Financial, Inc. is a consumer finance company. It provides purchasing and servicing auto loans to franchised and independent auto dealers. It enables loans and purchases installment sales contracts from automobile dealers for used cars and light trucks to its customers. Nicholas... More
Sector: Financial
Industry: Credit Services
Country: United States