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CURO completes the acquisition of First Heritage Credit and increases its financing capacity

By on July 13, 2022 0

WICHITA, Kan.–(BUSINESS WIRE)–CURO Group Holdings Corp. (NYSE: CURO) (“CURO”), a technology-driven, omnichannel consumer finance company serving unpreferred and blue-chip consumers in the United States and Canada, today announced that it has completed its previously announced acquisition of First Heritage Credit (“FHC”), a consumer lender that provides prime installment loans as well as customary optional insurance and other financial products, based in Ridgeland, Mississippi, for a total purchase price of $140 million in cash.

“The closing of this transaction, coupled with the recent sale of our U.S. direct lending business, represents the successful completion of the transformation of our U.S. direct lending business into a premier installment lender offering larger loans,” said Don Gayhardt, Managing Director. CURO officer. “As we look to our future, we are excited about the opportunities to strategically transition to providing longer-term, higher-balance, lower-rate credit products, which will simplify and improve the predictability of our business results. while improving and expanding access to lower cost debt capital.

Concurrent with the closing of the acquisition, CURO and its subsidiaries entered into a new $225 million non-recourse revolving warehouse facility to replace FHC’s historical lender and fund future loans originated by FHC. This new two-year facility will support FHC’s accelerated loan growth.

Advisors

King & Spalding LLP acted as legal counsel to CURO on the acquisition. Stephens Inc. acted as financial advisor and Butler Snow LLP acted as legal advisor to FHC in connection with the sale.

Forward-looking statements

This press release contains forward-looking statements. These forward-looking statements include statements regarding projections, estimates and assumptions regarding the impact of transactions on us, including our belief that the transformation will simplify and improve the predictability of our business results while improving and broadening access to loan capital at lower cost. In addition, words such as “future”, “opportunities”, “will” and variations of these similar words and expressions are intended to identify forward-looking statements. The ability to make these forward-looking statements is based on certain assumptions, judgments and other factors, both within our control and beyond our control, that could cause actual results to differ materially from those contained in the forward-looking statements, including including: failure to realize the anticipated benefits of the proposed transactions; risks related to the uncertainty of forecast financial information; the effects of competition on the Company’s future business; our ability to attract and retain customers; market, financial, political and legal conditions; the impact of the COVID-19 pandemic or any other global event on the Company’s business and the global economy; our dependence on third-party lenders to provide the liquidity we need to fund our loans and our ability to access affordable third-party funding; errors in our internal forecasts; our level of indebtedness; our ability to integrate acquired businesses; the actions of regulators and the negative impact of those actions on our business; our ability to protect our proprietary technology and analytics and to track those of our competitors; disruption to our information technology systems that adversely affects our business operations; inefficient pricing of the credit risk of our potential or existing customers; inaccurate information provided by customers or third parties which could lead to errors in the assessment of customers’ qualifications to receive loans; improper disclosure of personal customer data; the failure of third parties who provide products, services or support to us; any failure of third-party lenders that we rely on to conduct our business in certain states; disruption of our relationships with banks and other third-party electronic payment solution providers; and 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 respect to timing, extent, likelihood and degree of occurrence. There may be additional risks not currently known to us or that we currently believe are not material 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 to predict actual future results. We undertake no obligation to update, change or clarify any forward-looking statement for any reason.

About CURO

CURO Group Holdings Corp. (NYSE: CURO) is a full-spectrum consumer credit lender serving US and Canadian customers for over 25 years. Our roots in the consumer credit market run deep. We have worked diligently to provide our clients with a variety of convenient and easily accessible financial services. Our decades of alternative data powers a hard-to-replicate underwriting and rating engine, mitigating risk across the full spectrum of credit products. We operate a number of brands, including Cash Money®, LendDirect®, Flexiti®, Opt+®, Revolve Finance®, Heights Finance, Southern Finance, Covington Credit, Quick Credit, First Phase and First Heritage Credit.

About Premier Legacy Credit

Headquartered in Ridgeland, Mississippi, with offices and branches in Alabama, Louisiana, Mississippi, South Carolina and Tennessee, First Heritage Credit offers short and long-term personal loans designed to provide its customers with a convenient and reliable source. for extra money when they need it.

For more information, visit https://www.1stheritagecredit.com/.

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