Rent-A-Center cuts term loan B to $225 million, revolver upsized

By Sara Rosenberg

New York, March 14 - Rent-A-Center Inc. downsized its term loan B to $225 million from $350 million and increased its revolver to $675 million from $500 million, according to a market source.

Pricing on the B loan is Libor plus 300 basis points, after firming at the wide end of the Libor plus 275 bps to 300 bps talk, with a 0.75% Libor floor, which was trimmed from 1%, and an original issue discount of 991/2.

The term loan B has 101 soft call protection for one year.

J.P. Morgan Securities LLC is the lead bank on the now $900 million senior credit facility (Ba1), up from $850 million.

Proceeds will be used to refinance an existing $687.5 million credit facility that expires July 14, 2016, under which about $348 million is outstanding.

Closing is expected this quarter.

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

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