We believe 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

Rent-A-Center (RCII) announced the completion of the previously announced refinancing of its senior secured debt. The new $725 million senior credit facility consists of $325 million in term loans and a $400 million revolving credit facility. The Company drew down the $325 million in term loans and $88 million of the revolving facility today and utilized the proceeds to repay its existing senior term debt.

"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.