By Paul A. Harris
St. Louis, Oct. 28 - Rent-A-Center, Inc. priced a $300 million issue of 10-year senior notes (/BB-/) at par to yield 6 5/8% on Thursday, according to market sources.
The yield printed at the tight end of the 6¾% area price talk.
J.P. Morgan Securities LLC, Goldman Sachs & Co. and Bank of America Merrill Lynch were the joint bookrunners for the quick-to-market deal.
The notes were priced under Rule 144A and Regulation S.
The Plano, Texas-based rent-to-own company intends to use $200 million of the proceeds to repay bank debt and the remaining proceeds to repurchase shares of the company's common stock.
| Issuer: | Rent-A-Center, Inc.
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of America Merrill Lynch
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 396 bps
|
| Call protection: | Five years
|
| Trade date: | Oct. 28
|
| Settlement date: | Nov. 2
|
| Rating: | Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¾% area
|
| Marketing: | Quick to market
|
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