CURO Group Holdings Corp. to Reduce Debt and Strengthen Financial Position Through Restructuring Support Agreement; Implements Prepackaged Restructuring Plan by Commencing Voluntary Chapter 11 Reorganization

CURO Group Holdings Corp. (OTC: CURO) (“CURO” or the “Company”) today announced that, on March 22, 2024, it entered into a Restructuring Support Agreement (“RSA”) that is supported by holders (or their investment managers) of more than 74% of each of: (i) loans under the Company’s First Lien Credit Agreement (“1L Lenders”), (ii) the Company’s 7.500% Senior 1.5 Lien Secured Notes due 2028 (the “1.5L Notes” and, such parties, the “1.5L Noteholders”), and (iii) the Company’s 7.500% Senior Secured Notes due 2028 (the “2L Notes” and, such parties, the “2L Noteholders”).

To implement the terms of the RSA, CURO and certain subsidiaries have filed for voluntary relief under Chapter 11 (the “Chapter 11 Cases”) of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”). Prior to commencing the Chapter 11 Cases, the Company also commenced solicitation of the 1L Lenders, the 1.5L Noteholders, the 2L Noteholders and holders of CURO’s common stock for votes for a prepackaged joint plan of reorganization of the Company and certain of its subsidiaries (the “Plan”), which Plan has been filed contemporaneously with the filing of the Chapter 11 Cases. CURO also intends to file recognition proceedings in Canada under Part IV of the Companies’ Creditors Arrangement Act.

The RSA sets forth terms for a consensual restructuring plan that is expected to reduce the Company’s debt by approximately $1 billion, saving the Company approximately $75 million in cash interest annually and enabling CURO to invest in long-term growth. CURO branches are open, operating as usual and continuing to serve customers in the U.S. and Canada. Customer loans are unaffected by the filing.

“Implementing this restructuring through a court-supervised process is the most efficient path to enable us to make changes to our capital structure that will allow us to continue to grow responsibly, execute with excellence and solidify the foundation of the Company,” said Doug Clark, Chief Executive Officer at CURO. “The significant support we have received from our lenders and stakeholders will allow us to move forward expeditiously as we continue to provide our customers with a variety of convenient, easily accessible financial services. We are confident in our ability to successfully exit this process as a stronger company with significantly less debt and we will be better positioned to achieve long-term profitable growth.