Cash America completed the spinoff of its online subprime lending unit, Enova International, which started trading today on the New York Stock Exchange under the symbol ENVA.
In early trading, Enova shares were off 92 cents, or 3 percent, at $29.59.
In the spinoff, Cash America shareholders received shares in Enova at a rate of 0.915 shares for each Cash America share owned as of Nov. 3. Cash America continues to own 20 percent of Enova, which is headquartered in Chicago.
IN a statement, Cash America's president and CEO Daniel Feehan said:
“Today we completed the strategic separation of two businesses in a way that we believe will deliver superior long-term value to the shareholders of Cash America. We acquired the business that is today known as Enova in 2006 when it was a small online lender offering a single product reporting nominal profits. Today, Enova is an innovative diversified online business with over $800 million in revenue, based on the trailing twelve months results ended September 30, 2014. Through the use of advanced analytics and product development, Enova now offers a wide variety of loan products in five foreign countries and the United States.”
Mr. Feehan continued, “The foundation for the success of Enova was generated through our appreciation for the need for small short-term loans, which started with our traditional legacy storefront business based in the U.S. known as Cash America Pawn. From the end of 2006, the year Cash America acquired Enova, through September of this year, the storefront secured lending business has grown from 487 locations to 948 locations and more than doubled its pawn loan balance outstanding from $127 million to $264 million and remains the largest pawn loan company in the United States in terms of loans outstanding. With a proud history of successfully meeting the needs of its customers in a storefront environment, Cash America will continue to be a leader in its industry and set the standard for others to follow.”
-- Steve Kaskovich