Moody’s assigns Rent-A-Center notes B2

Moody’s Investors Service said it assigned a B2 rating to Rent-A-Center, Inc.’s planned $450 million of senior unsecured notes due 2029. All other ratings are unchanged.

“The B2 rating on the proposed notes reflects its junior position in the capital structure behind $875 million of secured debt and a proposed $550 million asset-based (ABL) revolver. The notes will be unconditionally guaranteed on a senior unsecured basis by all of the company’s restricted subsidiaries that guarantee the term loan and ABL credit facilities,” Moody’s said in a press release.

Proceeds along with borrowings under a new asset-based revolving credit facility, a Ba3-rated secured term loan due 2028 and Rent-A-Center common stock will be used to fund the acquisition of Acima, refinance debt, pay related fees and expenses and for general corporate purposes.

The outlook is stable.

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