PLANO, Texas--(BUSINESS WIRE)--Jun. 10, 2009--
Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS:RCII), the nation’s
largest rent-to-own operator, today announced that it has provided
notice to the Bank of New York Mellon Trust Company, the indenture
trustee, of its election to redeem all of its outstanding 7½% Senior
Subordinated Notes due 2010 in the aggregate principal amount of
$75,375,000 (the “Redeemed Notes”), at a redemption price equal to 100%
of the principal amount outstanding, plus accrued interest to the
redemption date (the “Redemption Price”). Under the terms of the
indenture, the notes are redeemable at par at the Company’s option
beginning May 1, 2009. The notes will be redeemed in accordance with
their terms and the Company expects the redemption to occur on or about
July 28, 2009 (the “Redemption Date”). On the Redemption Date, the
Redemption Price will become due and payable, and interest on the
Redeemed Notes will cease to accrue. Following the Redemption Date, all
of the Company’s 7½% Senior Subordinated Notes due 2010 will have been
paid in full.
The Company expects to fund the Redemption Price primarily with cash
flow generated from operations, together with amounts available under
its senior credit facilities.
This press release does not constitute a notice of redemption of the 7½%
Senior Subordinated Notes due 2010. The redemption is being made solely
pursuant to a notice of redemption dated June 10, 2009, which will be
delivered to the holders of the notes by The Bank of New York Mellon
Trust Company.
Rent-A-Center, Inc., headquartered in Plano, Texas, currently operates
approximately 3,000 company-owned stores nationwide and in Canada and
Puerto Rico. The stores generally offer high-quality, durable goods such
as major consumer electronics, appliances, computers and furniture and
accessories under flexible rental purchase agreements that generally
allow the customer to obtain ownership of the merchandise at the
conclusion of an agreed upon rental period. ColorTyme, Inc., a wholly
owned subsidiary of the Company, is a national franchiser of
approximately 220 rent-to-own stores operating under the trade name of
"ColorTyme."
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. 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