Rent-A-Center upsized $875M term loan allocates; terms

Rent-A-Center Inc. has completed its $875 million, seven-year covenant-lite term loan B that priced tight of talk at L+400, with a 0.75% Libor floor and an original issue discount of 99.5 via lead J.P. Morgan, according to sources. The term loan freed to a 100/100.5 market and was upsized by $300 million during syndication. Proceeds from the transaction will be used to help finance the company's acquisition of Acima and to refinance debt. Additional funding will come from a roughly $143 million draw on a $550 million asset-based lending facility, $450 million of 6.375% senior unsecured notes due February 2029, cash from the balance sheet and stock consideration.

Rent-A-Center is a lease-to-own retailer on products such as furniture, appliances, consumer electronics and computers.

Terms: