Rent-A-Center talks $575 million term loan B at Libor plus 450 bps

By Sara Rosenberg

New York, Jan. 26 – Rent-A-Center Inc. launched on Tuesday its $575 million term loan B (Ba3/BB-) with price talk of Libor plus 450 basis points with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities (USA) Inc. are the leads on the deal.

Commitments are due at 5 p.m. ET on Feb. 4.

Proceeds will be used to help fund the acquisition of Acima Holdings LLC for $1.273 billion in cash and about 10.8 million shares of Rent-A-Center common stock.

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

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.

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