Rent-A-Center plans $750 million credit facility for refinancing

By Sara Rosenberg

New York, June 21 - Rent-A-Center Inc. is planning on getting a new $750 million senior credit facility, according to a news release.

The facility consists of $250 million in term loans and a $500 million revolver.

Proceeds will be used to refinance about $358 million of existing senior term debt and replace a $375 million revolver that is set to mature on Sept. 30, 2013.

At close, the company expects to draw about $108 million on the new revolver.

Closing is anticipated to occur in the third quarter.

"We believe the current credit market, low interest rate environment and our sound balance sheet provides us with an opportunity to lower our cost of capital and further enhance our financial flexibility by extending maturities and moderating the amount of mandatory debt service over the next several years," said Robert D. Davis, chief financial officer, in the release.

Rent-A-Center is a Plano, Texas-based rent-to-own operator.

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