Rent-A-Center cuts spread on $875 million loan to Libor plus 400 bps

By Sara Rosenberg

New York, Feb. 4 – Rent-A-Center Inc. reduced pricing on its $875 million term loan B (Ba3/BB-) to Libor plus 400 basis points from Libor plus 450 bps and tightened the original issue discount to 99.5 from 99, according to a market source.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Earlier in syndication, the term loan was upsized from $575 million.

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

Proceeds will be used with borrowings under an asset-based revolving credit facility and $450 million of senior notes to 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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