Rent-A-Center gets $1.83 billion debt commitment for Acima purchase

By Sara Rosenberg

New York, Dec. 21 – Rent-A-Center Inc. has received $1.825 billion in debt financing commitments to help fund its acquisition of Acima Holdings LLC, according to company materials.

The debt will be funded through a new asset-based loan, a new term loan B, new secured bonds and new unsecured bonds.

J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities (USA) Inc. provided the debt commitments.

Under the agreement, Acima is being acquired for $1.273 billion in cash and about 10.8 million shares of Rent-A-Center common stock currently valued at $377 million.

Closing is expected in the first half of 2021 subject to customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Net leverage is anticipated to be around 2.5x adjusted EBITDA. The company is targeting deleveraging to less than 2x within 18 months post-close.

Rent-A-Center is a Plano, Tex.-based omni-channel lease-to-own provider for the credit constrained customer. Acima is a Salt Lake City-based provider of virtual lease-to-own solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.