Conn's says it will use $250 million in notes to pay down its line of credit. Conn's, the purveyor of household goods and consumer credit, says that it is going to sell $250 million in senior notes. It will use the proceeds to pay down some of its debt. The notes extend through 2022. Conn's had $517 million in debt on its balance sheet at the end of April.
In 2013, Conn's CEO Theodore Wright told investors that they offer promotional interest rate financing "not based on any kind of underwriting standards."
Corinthian Colleges negotiates a deal with the Department of Education: Over the weekend, Corinthian Colleges came to terms with an agreement with the Department of Education that will allow it to continue operating. The Department will release $16 million in federal payments. That flow of funds will mean that the company's schools can continue to operate. However, the agreement also mandates Corinthian to sell a number of its campuses.
Renting a tribe costs less than you think: Turns out that several Native American tribes have signed on with online payday lenders at very friendly terms. The tribes are not borrowing. No, they are instead making arrangements to lend the use of their tribal sovereignty to online payday lenders who in turn use that status to evade state consumer protection laws. According to a story in Al Jazeera, tribes sometimes receive as little as one percent of the revenue. The lenders do have to share their proceeds with other entities, of course. In a typical structure, a lender has to hire out for software, staff a call center, pay for lead generation, and run a web site. The authors visited California's Habematolel Pomo tribe. No one from the tribe had found employment as a result of their alliance.
New Lender is the Old Lender at World Acceptance: In last week's annual report, World Acceptance said that 73.5 percent of loans originated in fiscal 2014 were refinances of existing indebtedness. Another 10.4 were new loans to former borrowers. According to World, "in most cases, a refinancing will result in advancing additional funds."