Simpson Thacher represented the initial purchasers, led by joint book-running managers, J.P. Morgan Securities LLC and Goldman, Sachs & Co., and by co-managers, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, BB&T Capital Markets, a division of BB&T Securities, LLC and Citigroup Global Markets Inc., in the sale of an aggregate principal amount of $250 million 4.75% Senior Notes due 2021 by Rent-A-Center, Inc. (“Rent-A-Center”). The notes are guaranteed on an unsecured senior basis by each of Rent-A-Center’s existing and future subsidiaries that are either borrowers under Rent-A-Center’s senior credit facilities or that guarantee any indebtedness of Rent-A-Center or any other guarantor, subject to certain exceptions. Rent-A-Center intends to use the net proceeds from the offering to (1) repay $46 million of the revolving loans outstanding under its revolving credit facility and (2) apply the remainder to accelerated common stock repurchases as market conditions permit, and to the extent not so applied, for general corporate purposes.
Rent-A-Center 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 products, such as consumer electronics, appliances, computers, furniture and accessories, under flexible rental purchase agreements with no long-term obligation.
The Simpson Thacher team included Art Robinson and David Azarkh (Capital Markets); Stacie McGinn (Regulatory); Chang Choi (Tax); Mardi Merjian (Real Estate); Timothy Mulvihill (Environmental); Linda Barrett (Executive Compensation and Employee Benefits); Mindy Lok (Intellectual Property); and Jennie Getsin (Blue Sky).