FirstCash Holdings Inc.'s Proposed $500 Million Senior Unsecured Notes Due 2032 Rated 'BB' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) Feb. 15, 2024--S&P Global Ratings today assigned its 'BB' issue rating and a '3' recovery rating to FirstCash Holding Inc.'s proposed issuance of $500 million senior unsecured notes due 2032. The '3' recovery rating indicates our expectation of meaningful (50-70%; rounded estimate: 50%) recovery in the event of a default. The company plans to use the net proceeds to repay outstanding borrowings on its revolving credit facility ($568 million outstanding as of Dec. 31, 2023). Therefore, we view the transaction as leverage neutral. The proposed transaction does not immediately affect our issuer credit rating of 'BB' or our stable outlook on FirstCash. However, we could lower our ratings if leverage exceeds 3.0x on a sustained

...February 15, 2024 NEW YORK (S&P Global Ratings) Feb. 15, 2024--S&P Global Ratings today assigned its '##' issue rating and a '3' recovery rating to FirstCash Holding Inc.'s proposed issuance of $500 million senior unsecured notes due 2032. The '3' recovery rating indicates our expectation of meaningful (50-70%; rounded estimate: 50%) recovery in the event of a default. The company plans to use the net proceeds to repay outstanding borrowings on its revolving credit facility ($568 million outstanding as of Dec. 31, 2023). Therefore, we view the transaction as leverage neutral. The proposed transaction does not immediately affect our issuer credit rating of '##' or our stable outlook on FirstCash. However, we could lower our ratings if leverage exceeds 3.0x on a sustained basis. This could occur if the company draws meaningfully on the revolving credit facility to fund operations or store acquisitions, or if earnings deteriorate because of less favorable market conditions. FirstCash ended...

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