PLANO, Texas--(BUSINESS WIRE)--Feb. 6, 2014--
Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS:RCII), the nation’s
largest rent-to-own operator, today announced that, subject to market
and other conditions, it anticipates refinancing its current senior
credit facility by entering into a new $850 million senior credit
facility, consisting of a $350 million term loan and a $500 million
revolving credit facility. The Company’s existing $687.5 million credit
facility expires July 14, 2016. The Company expects to complete the
transaction in the first quarter of 2014, and intends to repay amounts
outstanding under its senior credit facility, currently approximately
$348 million, with the proceeds of the new term loan. The Company also
stated that in connection with the proposed refinancing, it anticipates
obtaining from its existing lenders a waiver under its existing credit
agreement to permit the declaration and payment of a dividend for the
second quarter of 2014, subject to approval by the Company’s board of
directors.
Rent-A-Center, Inc., headquartered in Plano, Texas, is the largest
rent-to-own operator in North America, focused on improving the quality
of life for its customers by providing them the opportunity to obtain
ownership of high-quality durable goods such as consumer electronics,
appliances, computers, furniture and accessories, under flexible rental
purchase agreements with no long-term obligation. The Company owns and
operates approximately 3,205 stores in the United States, Canada, Mexico
and Puerto Rico, and approximately 1,325 Acceptance Now kiosk locations
in the United States and Puerto Rico. For additional information about
the Company, please visit www.rentacenter.com.
This press release contains forward-looking statements that involve
risks and uncertainties. Such forward-looking statements generally can
be identified by the use of forward-looking terminology such as “may,”
“will,” “expect,” “intend,” “could,” “estimate,” “should,” “anticipate,”
or “believe,” or the negative thereof or variations thereon or similar
terminology. Although the Company believes that the expectations
reflected in such forward-looking statements will prove to be correct,
the Company can give no assurance that such expectations will prove to
have been correct. The actual future performance of the Company
could differ materially from such statements. Factors that could cause
or contribute to such differences include, but are not limited to: (i)
changes in interest rates; (ii) changes in the credit markets; (iii) the
ability to obtain a waiver from the Company’s existing lenders on terms
acceptable to the Company; (iv) the ability to enter into a new senior
credit agreement containing terms acceptable to the Company; (v) changes
in our debt ratings; and (vi) other risks detailed from time to time in
the Company’s SEC reports, including but not limited to, the Company’s
annual report on Form 10-K for the year ended December 31, 2012, and its
quarterly reports on Form 10-Q for the quarters ended March 31, 2013,
June 30, 2013, and September 30, 2013, and other documents filed by the
Company from time to time with the SEC. You are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Except as required by law,
the Company is not obligated to publicly release any revisions to these
forward-looking statements to reflect the events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events.
Source: Rent-A-Center, Inc.
Rent-A-Center, Inc.
David E. Carpenter, 972-801-1214
Vice
President of Investor Relations
david.carpenter@rentacenter.com