this [structure will allow] us to scale our secured debt as we
continue to grow our core rent-to-own business and expand our
entry into the financial services business.
Robert D. Davis, Chief Financial Officer, Rent-A-Center
"We believe this enhanced revolving structure will provide us
financial flexibility by allowing us to scale our secured debt
as we continue to grow our core rent-to-own business and expand
our entry into the financial services business," commented Mr.
Robert D. Davis, the Company's Chief Financial Officer. "Based
upon our present leverage ratio and current debt level, we
expect an approximate 50 basis point interest expense savings
over the term of the new credit facility," Davis stated. In
connection with the closing of the refinancing, the Company will
record a charge in the third quarter of approximately $2.2
million relating to unamortized costs under the Company's
previous senior credit facility.
Rent-A-Center operates 2,749 company-owned stores nationwide and
in Canada and Puerto Rico.