The Cash Store Financial Services Inc. has entered into a credit agreement with Coliseum Capital Management, LLC, 8028702 Canada Inc. and 424187 Alberta Ltd. pursuant to which the Lenders have agreed to provide $12.0 million of loans in the aggregate. The loans will be guaranteed by the company's subsidiaries. The Credit Agreement provides that a total of up to $32.5 million may be advanced, but the Lenders, at this time, have made no commitment to provide additional loans.

The $32.5 million facility falls within the first lien carve-out provisions of the company's January 2012 Indenture governing the Company's 11.5% senior secured notes due 2017. The Credit Agreement is instrumental to the company's long-term strategic plans, and the first advance of $12.0 million will fund operations and growth in key business areas. The loans made under the Credit Agreement will mature on November 29, 2016 and bear interest at a rate of 12.5% per annum, paid monthly.

The Credit Agreement incorporates the covenants contained in the Indenture governing the Company's 11.5% senior secured notes due 2017. The Credit Agreement also contains additional covenants relating to minimum Adjusted EBITDA and Cash/Accounts Receivable thresholds to be met on a quarterly basis as well as prepayment premiums in each of the first two years of the Credit Agreement in respect of repaying the loans prior to maturity. The loans are secured by a first priority lien on all assets under the Company's existing Collateral Trust and Intercreditor Agreement.

The company's board of directors, after considering, among other things, a recommendation from the independent audit committee of the board of directors, determined that the funding under the Credit Agreement provides more flexibility than the other funding alternatives considered by the Company. The board approved the Credit Agreement, with Gordon Reykdal abstaining. Alberta Ltd., which has committed to loan $2.0 million to the Company, is controlled by the Company's CEO and a director, Gordon Reykdal.

Coliseum, which has committed to loan $5.0 million to the company.