Rent-A-Redo

After refinancing $600 million of debt in July, Rent-A-Center is back in the market for another refinancing.

  • 06 Oct 2006
Email a colleague
Request a PDF

After refinancing $600 million of debt in July, Rent-A-Center is back in the market for another refinancing. RAC is now looking for a $1.3225 billion facility to refinance its newest $725 million credit from JPMorgan and help fund the acquisition of Rent-Way.

The company had originally set out for a $600 million add-on to the existing $725 million credit facility, but is now looking for a complete revamp from incumbent sole-lead, JPMorgan. Launched last Tuesday, the deal consists of a five-year, $400 million revolver; a five-year, $197.5 million "A" term loan and a six-year, $725 million term loan "B," according to market sources. Calls to spokesmen at Rent-A-Center and Rent-Way were not returned.

The July refinanced facility consists of a $400 million revolver, a $200 million "A" term loan and a $125 million term loan "B." Pricing on the pro rata is LIBOR plus 1% and pricing on the term loan "B" is LIBOR plus 1 1/2%. Pricing on the new facility could not be determined, although one investor expected it to be increased from the existing facility.

Plano, Texas-based Rent-A-Center announced in August it would acquire Rent-Way for $10.65 in cash per share, for a total transaction value of approximately $567 million. Moody's Investors Service downgraded Rent-A-Center's corporate family rating to Ba3 and $600 million of 7.5% existing senior subordinated notes due 2010 to B2. The downgrades were a result of the debt-financed acquisition. Rent-A-Center is a leasing center for consumer goods with an option for ownership at the end of the rental period. Rent-Way, headquartered in Erie, Pa., is also a rental-purchase store operator.

  • 06 Oct 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Jul 2017
1 Bank of America Merrill Lynch 57,210.26 177 12.39%
2 Citi 56,957.04 171 12.34%
3 Wells Fargo Securities 47,551.45 149 10.30%
4 JPMorgan 32,965.91 111 7.14%
5 Credit Suisse 23,990.96 75 5.20%