New Issue: Rent-A-Center details $250 million 4¾% eight-year notes sold at par

By Paul A. Harris

Portland, Ore., April 30 - Rent-A-Center, Inc. priced a $250 million issue of eight-year senior notes (Ba3/BB-/) at par to yield 4¾% on Monday, according to a market source.

The yield printed at the tight end of the revised 4¾% to 4 7/8% yield talk. Earlier talk was 4 7/8% to 5 1/8%.

J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners.

The Plano, Texas-based rent to own operator plans to use the proceeds for general corporate purposes, including stock repurchases, and to repay its revolver.

Issuer:	Rent-A-Center, Inc.
Amount:	$250 million
Maturity:	May 1, 2021
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Goldman Sachs & Co.
Co-managers:	BofA Merrill Lynch, Wells Fargo Securities LLC, BB&T Capital Markets, Citigroup Global Markets Inc.
Coupon:	4¾%
Price:	Par
Yield:	4¾%
Spread:	346 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2016, then callable at 103.563, 102.375, 101.188, par on and after May 1, 2019
Equity clawback:	35% at 104.75 until May 1, 2016
Change-of-control put:	101%
Trade date:	April 29
Settlement date:	May 2
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	4¾% to 4 7/8%, revised from earlier talk of 4 7/8% to 5 1/8%
Marketing:	Quick to market

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