Rent-A-Center completes redemption of 11% notes

New York, Aug. 19 - Rent-A-Center, Inc. (B1/B+) said that it had completed its previously announced redemption of all of the remaining outstanding 11% series D senior subordinated notes due 2008 issued by its Rent-A-Center East subsidiary.

The total aggregate redemption price for the notes was approximately $93.75 million, including $4.65 million in accrued interest and $4.65 million in redemption premium.

As previously announced, Rent-A-Center, a Plano, Texas-based rental purchase store operator, tendered for all of its outstanding 11% notes in a tender offer via dealer-manager Lehman Brothers which began on April 23 and which was completed on May 20, and said at that time that it would call any notes which remained outstanding after the tender offer.

On June 17, the company announced that it would redeem all $84.455 million of the notes which remained outstanding following the tender offer. It said the redemption would take place on Aug. 15 at a redemption price of price of 105.5% of the principal amount, plus unpaid interest accrued up to the redemption date.

Rent-A-Center said that it would fund the redemption using the remaining proceeds of its Rule 144A sale of $300 million of new 7½% senior subordinated notes due 2010, which took place on May 1 (most of the proceeds had been used to repurchase approximately $187.795 million of the notes under the tender offer).

The trustee for the notes - The Bank of New York - was serving as the paying agent.

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