Moody's: Rent-A-Center notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Rent-A-Center, Inc.'s proposed $250 million guaranteed senior unsecured notes due 2021.

The outlook was revised to stable from positive.

The company's Ba2 corporate family rating, Ba2-PD probability of default rating and Ba3 rating on its existing $300 million senior unsecured notes due 2020 were affirmed.

Rent-A-Center intends to use proceeds from the proposed notes to repay $46 million of revolving loans outstanding under its credit facility, with the remaining net proceeds to be used for share repurchases and for general corporate purposes.

As of March 31, Rent-A-Center had about $205.2 million remaining under its $1 billion authorized share repurchase program. On April 26, the company announced it had increased the authorization by an additional $250 million to $1.25 billion resulting in pro forma availability (as of March 31, 2013) of roughly $455.2 million.

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