Rent-A-Center plans new $725 million credit facility

By Sara Rosenberg

New York, June 5 - Rent-A-Center Inc. plans to come to market with a new $725 million senior credit facility, according to a company news release.

The facility will consist of $325 million in term loans and a $400 million revolver.

Proceeds will be used to repay existing senior debt, currently $388.9 million outstanding, and for general corporate purposes.

The refinancing is expected to be completed in the third quarter.

"Notwithstanding the overall rise in interest rates, we believe the current credit market and pricing of senior debt remains attractive as a result of strong investor liquidity. Accordingly, we believe these factors should provide us with an opportunity to lower our cost of capital and enhance our financial flexibility," said Robert D. Davis, chief financial officer, in the release.

Rent-A-Center is a Plano, Texas, operator of company-owned stores in the rent-to-own industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.