Rent-Way announced it is retaining investment giant Salomon Smith Barney, a
Citigroup company, as a 'Financial Advisor' to guide Rent-Way through its
efforts to refinance current debt.
Based on a rating of CCC+, Rent Way pays upwards of 15% on its outstanding
debt of $303 million (as of June 30). The refinancing of this debt is seen by
observers as critical to the company's survival, and has been a primary focus of
company executives since early 2002.
CEO William Morgenstern stated during the Q3 conference call that Rent-Way
"...could re-finance now, but will wait for better terms". Hopefully, that time
has arrived. With better terms, more cash available for growth would benefit
Rent Way employees and customers alike.
currently trading at $3.49, up 8.05% on the day.