By Paul A. Harris
Portland, Ore., Feb. 4 – Rent-A-Center, Inc. priced a $450 million issue of eight-year senior notes (B2/B) at par to yield 6 3/8% in a Thursday drive-by, according to market sources.
The yield printed 12.5 basis points inside of the 6½% to 6¾% yield talk. Initial talk was 7% to 7¼%.
The deal was heard to have played to $2.1 billion of demand across 100 accounts, a trader said.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. were the joint bookrunners.
The Plano, Tex.-based furniture and appliance rent-to-own company plans to use the proceeds plus a draw on its asset-based revolver and a new term loan to fund its merger with Acima Holdings, LLC.
| Issuer: | Radiant Funding SPV, LLC, to be merged with and into Rent-A-Center, Inc.
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| Amount: | $450 million
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| Maturity: | Feb. 15, 2029
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc.
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| Coupon: | 6 3/8%
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| Price: | Par
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| Yield: | 6 3/8%
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| Spread: | 544 bps
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| Call protection: | Three years
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| Trade date: | Feb. 4
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| Settlement date: | Feb. 17
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| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6½% to 6¾%
|
| Marketing: | Drive-by
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