08-20-02
RTO Online

Aaron Rents took another step towards a major expansion with the announcement today of a $50 million private debt placement at very attractive rates. The debt consists of 6.88% senior unsecured notes due August 2009.

Terms are Interest only payments for 2 years followed by annual $10 million principal plus interest payments for 5 years.

The company issued the following statement...

Charles Loudermilk
CEO
"This private placement of debt provides a longer-term of debt financing than currently exists under our bank facilities, as well as additional capital to support the continuing growth of the Company,"
"This financing, along with the $34.1 million of net proceeds from our secondary equity offering in June of this year, puts the Company in a very strong financial position to reach its expansion goals over the next several years"

Aaron Rents has made no secret of their desire to replace Rent Way as the second largest player in the industry. Insiders report a major increase in franchise inquiries, mostly from investment groups looking to outperform the market.

This deal lends credence to the old adage..."If you want a bank to loan you money...prove to them that you don't need it".

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