Aaron’s amends credit facilities, adds $137.5 million term loan A

By Sarah Lizee

Olympia, Wash., Oct. 25 – Aaron’s, Inc. amended its revolving credit and term loan agreement dated Sept. 18, 2017 with SunTrust Bank as administrative agent on Tuesday, providing for a new $137.5 million term loan A facility, according to an 8-K filing with the Securities and Exchange Commission.

The new term loan will be used to repay outstanding revolving loans under the existing credit agreement, to pay some related fees and transaction expenses and for working capital purposes.

The amendment also changes some provisions of the existing credit agreement to reflect the terms of the new term loan A, the filing noted.

Additionally, the company amended on Tuesday its franchisee loan facility agreement dated Oct. 25, 2017.

The maximum facility commitment under the loan facility agreement was reduced to $55 million from $85 million, and the commitment termination date was extended to Oct. 23, 2019 from Oct. 24, 2018.

Aaron’s said the maximum commitment reduction was made at the company’s request, primarily to reduce the amount of fees paid on the unused portion of the commitment.

Aaron’s is an Atlanta-based sales and lease ownership company and specialty retailer of consumer electronics, computers, residential and office furniture, household appliances and accessories.

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