Rent-A-Center plans $600 million credit facility

New York, June 16 - Rent-A-Center, Inc. said it plans a new $600 million senior credit facility to refinance its current senior debt.

The new facility will be made up of a $400 million term loan and a $200 million revolver.

The Plano, Texas operator of rental purchase stores expects to complete the transaction in the third quarter.

In addition to repaying the existing facility, Rent-A-Center will use proceeds for general corporate purposes.

"We believe the current credit market environment, coupled with our enhanced credit standing evidenced by our recent credit upgrade by Standard & Poor's, provides us with an opportunity to lower our cost of capital and enhance our operational and financial flexibility," said Robert Davis, the company's chief financial officer, in a news release.

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