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Long-term Debt and Capital Lease Obligations | 6 Months Ended
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Mar. 31, 2014
Debt Disclosure [Abstract] |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | NOTE 7: LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS The following table presents our long-term debt instruments and balances under capital lease obligations outstanding at March 31, 2014 and 2013 and September 30, 2013. The recourse line of credit is due in May 2015; the non-recourse debt matures at various months in the years so indicated in the table below:
| March 31, 2014 |  | March 31, 2013 |  | September 30, 2013
| Carrying Amount |  | Debt Premium |  | Carrying Amount |  | Debt Premium |  | Carrying Amount |  | Debt Premium
| (in thousands)
Recourse to EZCORP: |  |  |  |  |  |  |  |  |  |  |
Domestic line of credit up to $200 million due 2015 | $ | 83,000 |  |  | $ | — |  |  | $ | 74,000 |  |  | $ | — |  |  | $ | 140,900 |  |  | $ | — |
Capital lease obligations | 639 |  |  | — |  |  | 1,181 |  |  | — |  |  | 924 |  |  | — |
Non-recourse to EZCORP: |  |  |  |  |  |  |  |  |  |  |
Secured foreign currency line of credit up to $4 million due 2014 | 528 |  |  | 51 |  |  | 2,009 |  |  | 156 |  |  | 1,207 |  |  | 99 |
Secured foreign currency line of credit up to $19 million due 2015 | 2,616 |  |  | — |  |  | 12,142 |  |  | — |  |  | 6,281 |  |  | — |
Secured foreign currency line of credit up to $5 million due 2015 | 2,863 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Secured foreign currency line of credit up to $5 million due 2016 | 1,077 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Secured foreign currency line of credit up to $23 million due 2017 | 22,929 |  |  | — |  |  | 22,352 |  |  | — |  |  | 22,822 |  |  | — |
Consumer loans facility due 2017 | — |  |  | — |  |  | 33,995 |  |  | — |  |  | 31,951 |  |  | — |
Consumer loans facility due 2019 | 55,715 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
10% unsecured notes due 2013 | — |  |  | — |  |  | 664 |  |  | — |  |  | 503 |  |  | — |
15% unsecured notes due 2013 | — |  |  | — |  |  | 14,273 |  |  | 825 |  |  | 12,884 |  |  | 244 |
10% unsecured notes due 2014 | 7,212 |  |  | — |  |  | 2,373 |  |  | — |  |  | 8,925 |  |  | — |
11% unsecured notes due 2014 | 110 |  |  | — |  |  | 5,347 |  |  | — |  |  | 110 |  |  | — |
9% unsecured notes due 2015 | 29,933 |  |  | — |  |  | — |  |  | — |  |  | 16,068 |  |  | — |
10% unsecured notes due 2015 | 696 |  |  | — |  |  | 444 |  |  | — |  |  | 418 |  |  | — |
15% secured notes due 2015 | — |  |  | — |  |  | 4,561 |  |  | 513 |  |  | 4,185 |  |  | 381 |
10% unsecured notes due 2016 | 121 |  |  | — |  |  | 128 |  |  | — |  |  | 121 |  |  | — |
12% secured notes due 2017 | 4,103 |  |  | 281 |  |  | — |  |  | — |  |  | — |  |  | — |
12% secured notes due 2019 | 17,579 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total long-term obligations | 229,121 |  |  | 332 |  |  | 173,469 |  |  | 1,494 |  |  | 247,299 |  |  | 724 |
Less current portion | 14,761 |  |  | 255 |  |  | 35,445 |  |  | 1,141 |  |  | 30,969 |  |  | 543 |
Total long-term and capital lease obligations | $ | 214,360 |  |  | $ | 77 |  |  | $ | 138,024 |  |  | $ | 353 |  |  | $ | 216,330 |  |  | $ | 181 |
On May 10, 2011, we entered into a new senior secured credit agreement with a syndicate of five banks, replacing our previous credit agreement. Among other things, the new credit agreement provides for a four-year $175 million revolving credit facility that we may, under the terms of the agreement, request to be increased to a total of $225 million. Upon entering the new credit agreement, we repaid and retired our $17.5 million outstanding debt. On May 31, 2013, we amended the senior secured credit agreement to increase our revolving credit facility from $175 million to $200 million. The new credit facility increases our available credit and provides greater flexibility to make investments and acquisitions both domestically and internationally. No other terms of our senior secured credit agreement were modified. Pursuant to the credit agreement, we may choose to pay interest to the lenders for outstanding borrowings at LIBOR plus 200 to 275 basis points or the banks' base rate plus 100 to 175 basis points, depending on our leverage ratio computed at the end of each calendar quarter. On the unused amount of the credit facility, we pay a commitment fee of 37.5 to 50.0 basis points depending on our leverage ratio calculated at the end of each quarter. Terms of the credit agreement require, among other things, that we meet certain financial covenants, restrict dividend payments and limit other and non-recourse debt. At March 31, 2014, we were in compliance with all covenants. At March 31, 2014, $83.0 million was outstanding under our revolving credit agreement. This facility is collateralized with EZCORP’s domestic assets. We have also issued $3.1 million in letters of credit, leaving $113.9 million available on our revolving credit facility. The outstanding bank letters of credit were required under our workers' compensation insurance program and for our international office in Miami, Florida. Deferred financing costs related to our credit agreement are included in intangible assets, net on the condensed consolidated balance sheets and are being amortized to interest expense over the term of the agreement. Our senior secured credit agreement will expire in May 2015. We are actively working to replace this credit facility with a new financing facility. On January 30, 2012, we acquired a 60% ownership interest in Grupo Finmart. Non-recourse debt amounts in the table above represent Grupo Finmart’s third-party debt. All unsecured notes are collateralized with Grupo Finmart's assets and are due at maturity. All lines of credit are guaranteed by Grupo Finmart's loan portfolio. Interest on lines of credit due 2014, 2015 and 2016 is charged at the Mexican Interbank Equilibrium ("TIIE") plus a margin varying from 5% to 10%. The line of credit due 2014 requires monthly payments of $0.1 million with remaining principal due at maturity. The two lines of credit due 2015 require monthly payments of $0.5 million with the remaining principal due at maturity. The line of credit due 2016 requires monthly payments of $0.1 million with the remaining principal due at maturity. The line of credit due 2017 has a 14.5% interest rate, requires monthly payments of $1.9 million, and the remaining principal is due at maturity. The 12% secured notes due 2017 require monthly payments of $0.1 million with the remaining principal due at maturity. The 12% secured notes due 2019 require monthly payment of $1.0 million with the remaining principal due at maturity. At acquisition, we performed a valuation to determine the fair value of Grupo Finmart's debt. As a result, we recorded a debt premium on Grupo Finmart’s debt. This debt premium is being amortized as a reduction of interest expense over the life of the debt. The fair value was determined by using an income approach, specifically the discounted cash flows method based on the contractual terms of the debt and risk adjusted discount rates. On July 10, 2012, Grupo Finmart entered into a securitization transaction to transfer the collection rights of certain eligible consumer loans to a bankruptcy remote trust in exchange for cash on a non-recourse basis. The trust received financing as a result of the issuance of debt securities and delivered the proceeds of the financing to Grupo Finmart. The securitization agreement called for a two-year lending period in which the trust would use principal collections of the consumer loan portfolio to acquire additional collection rights up to $114.6 million in eligible loans from Grupo Finmart. Upon the termination of the lending period, the collection received by the trust would be used to repay the debt. Grupo Finmart would continue to service the underlying loans in the trust. On February 17, 2014, Grupo Finmart repaid this facility. In connection with this repayment, we wrote off the deferred financing costs related to this facility. On February 17, 2014, Grupo Finmart entered into a new securitization transaction to transfer collection rights of certain eligible consumer loans to a bankruptcy remote trust in exchange for cash. The trust received financing as a result of the issuance of debt securities and delivered the proceeds of the financing to Grupo Finmart. The unrestricted cash received from this borrowing in the amount of $35.2 million was primarily used to repay the previous securitization borrowing facility due 2017 and the transaction costs associated with this transaction. The cash proceeds of approximately $20.5 million is restricted primarily for $17.8 million of collection rights on the additional eligible loans from Grupo Finmart, which Grupo Finmart expects to deliver to the trust within the next 12 months, and $2.7 million of interest and trust maintenance costs to be recovered at repayment. The restricted cash proceeds of $17.8 million is recourse to Grupo Finmart unless additional eligible loans are delivered within two-year period specified in the agreement. The borrowing facility has a two year lending period and matures on March 19, 2019. Upon the termination of the lending period, Grupo has an option to start prepaying the principle early from the collection received by the trust. Grupo Finmart will continue to service the underlying loans in the trust. Deferred financing costs related to the new consumer loans facility, totaling approximately $2.5 million are included in intangible assets, net on the condensed consolidated balance sheets and are being amortized to interest expense over the term of the agreement. Grupo Finmart is the primary beneficiary of the securitization trust because Grupo Finmart has the power to direct the most significant activities of the trust through its role as servicer of all the receivables held by the trust and through its obligation to absorb losses or receive benefits that could potentially be significant to the trust. Consequently, we consolidate the trust. As of March 31, 2014, borrowings under the securitization borrowing facility due 2019 amounted to $55.7 million. Interest is charged at TIIE plus a 2.5% margin, or a total of 6.3% as of March 31, 2014. On May 15, 2013, Grupo Finmart issued and sold $30.0 million of 9% Global Registered Notes due November 16, 2015. Notes with an aggregate principal amount of $14.0 million were originally purchased by EZCORP and, therefore, eliminated in consolidation in prior periods. On March 31, 2014, EZCORP sold its outstanding notes in the amount of $11.7 million to the outside party, thereby increasing the total consolidated notes balance. As a result of this transaction we recorded a loss of $0.7 million, which is included under (loss) gain on sale or disposal of assets in our three and six month period ended March 31, 2014 condensed consolidated statement of operations. Grupo Finmart used a portion of the net proceeds of the offering to repay existing indebtedness, and used the remaining portion for general operating purposes.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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