Cash America International, Inc. (NYSE:PWN) today announced the terms of a previously disclosed capital transaction involving its wholly-owned subsidiary, Mr. Payroll Corporation, and Wells Fargo Bank N.A. Pursuant to a revised Letter of Intent between the parties, the proposed transaction calls for the contribution of cash and assets to Mr. Payroll Corporation to be used for the continued development and deployment of Mr. Payroll Corporation's first ever fully automated check cashing and financial services machine. Cash America will retain sole ownership of the manned check cashing operation of Mr. Payroll Corporation, which consists of 147 franchised and company owned check cashing locations. The proposed transaction provides for Wells Fargo to contribute cash in the amount of $20 million and all of the assets of an existing network of 200 ATM's to Mr. Payroll Corporation. Upon consummation of the transaction, Wells Fargo and Cash America would hold equal shares of senior convertible preferred stock of Mr. Payroll Corporation representing 90% of the ownership of Mr. Payroll. The remaining ownership interest of 10% will be comprised of common stock reserved for management of Mr. Payroll. The completion of the proposed transaction is subject to the execution of definitive agreements, regulatory approval and other customary conditions, including the parties' joint filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which the Company anticipates will take place this week. Commenting on the events, Daniel R. Feehan, Co-Chief Executive Officer of Mr. Payroll Corporation said, "The proposed transaction with Wells Fargo Bank would forge a strong strategic partnership dedicated to revolutionizing the capabilities of electronic financial services delivery to the public. The performance and potential of Mr. Payroll's first ever fully automated check cashing platform is confirmed through this partnership with one of the leading financial institutions based in the United States." Mr. Feehan added, "The capital and ancillary strategic benefits of a union with Wells Fargo would give Mr. Payroll Corporation the opportunity to expand product offerings and to continue to actively deploy our machines in a variety of convenience stores, retail outlets, gaming establishment and other high traffic public areas that support a need for automated financial services." Since the installation of the first Mr. Payroll Check Cashing Machine (CCM) in June 1997, machines have been deployed in 19 states in over 90 locations. The Mr. Payroll CCM already has been used to cash over 500,000 checks of all types for more than $130 million. Additional information on Mr. Payroll can be found on the World Wide Web at http://www.mrpayroll.com. Cash America International, Inc. is a diversified provider of specialty finance services to individuals in the United States, United Kingdom and Sweden. Cash America is the largest provider of secured non- recourse loans to individuals commonly referred to as pawn loans, through 464 locations in 16 states and two foreign countries. In addition, the Company provides check-cashing services through its wholly owned subsidiary, Mr. Payroll Corporation, and rental services through its wholly owned subsidiary, Rent A Tire, Inc. This release contains forward-looking statements about the business, financial condition, and prospects of Cash America International, Inc. and Mr. Payroll Corporation ("the Company"). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in demand for the Company's services, changes in competition, the ability of the Company to open new operating units in accordance with its plans, economic conditions, real estate market fluctuations, interest rate fluctuations, changes in the capital markets, changes in tax and other laws and governmental rules and regulations applicable to the Company's business and other risks indicated in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the Company to control and, in many cases, the Company cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. Additional Information: Daniel R. Feehan (817) 335-7200 Thomas A. Bessant, Jr.
(817) 335-1100
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