PLANO, Texas (AFX) - Rent-A-Center Inc., the nation's largest rent-to-own operator, said Monday it plans to refinance its current senior debt with a new $725 million senior credit facility, consisting of $325 million in term loans and a $400 million revolving credit line.
The company said it expects to complete the refinancing in the third quarter, and plans to use proceeds to repay its $388.9 million of existing outstanding senior debt, and for general corporate purposes.
'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,' noted Chief Financial Officer Robert D. Davis.
Rent-A-Center currently operates 2,743 company-owned stores nationwide and in Canada and Puerto Rico, offering consumer electronics, appliances, computers, furniture and accessories under rental purchase agreements.
Shares of the company closed down 31 cents at $24.44 on the Nasdaq National Market, but edged up 2 cents in aftermarket activity.
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