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Rent-A-Center Announces Intention to Offer $250 Million in Senior Unsecured Notes

  Rent-A-Center Announces Intention to Offer $250 Million in Senior Unsecured
  Notes

Business Wire

PLANO, Texas -- April 29, 2013

Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS: RCII) announced today that it
intends, subject to market conditions, to offer $250 million in aggregate
principal amount of senior unsecured notes due 2021 (the “notes”) in a private
offering that is exempt from the registration requirements of the Securities
Act of 1933, as amended (the “Securities Act”). The Company intends to use the
net proceeds of the offering to repay $46 million of the revolving loans
outstanding under its revolving credit facility and apply the remainder to
accelerated common stock repurchases as market conditions permit and, to the
extent not so applied, for general corporate purposes.

The notes and the related guarantees will be offered only to qualified
institutional buyers in reliance on the exemption from registration set forth
in Rule 144A under the Securities Act, and outside the United States to
non-U.S. persons in reliance on the exemption from registration set forth in
Regulation S under the Securities Act. The notes and the related guarantees
have not been registered under the Securities Act, or the securities laws of
any state or other jurisdiction, and may not be offered or sold in the United
States without registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities or blue sky
laws and foreign securities laws.

This press release shall not constitute an offer to sell, or the solicitation
of an offer to buy, any securities, nor shall there be any sales of the notes
in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such jurisdiction. This press release is being issued pursuant to and in
accordance with Rule 135(c) under the Securities Act.

Rent-A-Center, Inc., headquartered in Plano, Texas, is the largest rent-to-own
operator in North America, focused on improving the quality of life for its
customers by providing them the opportunity to obtain ownership of
high-quality, durable goods such as consumer electronics, appliances,
computers, furniture and accessories, under flexible rental purchase
agreements with no long-term obligation. The Company owns and operates
approximately 3,111 stores in the United States, Canada, Mexico and Puerto
Rico, and approximately 1,053 RAC Acceptance kiosk locations in the United
States and Puerto Rico. ColorTyme, Inc., a wholly owned subsidiary of the
Company, is a national franchiser of approximately 224 rent-to-own stores
operating under the trade name of “ColorTyme.”

This press release includes forward-looking statements. These statements may
relate to, among other things, expectations regarding revenues, cash flows,
capital expenditures and other financial items. Forward-looking statements
generally can be identified by the use of forward-looking terminology such as
“may,” “will,” “would,” “expect,” “intend,” “could,” “estimate,” “should,”
“anticipate” or “believe,” or the negative thereof or variations thereon or
similar terminology. The Company believes the expectations reflected in such
forward-looking statements are accurate. However, there can be no assurance
that these expectations will occur. The Company’s actual future performance
could differ materially from such statements. Factors that could cause or
contribute to these differences, cause the Company to abandon the transactions
referred to in this press release, or impact the Company’s ability to
successfully complete the transactions referred to in this press release
include, but are not limited to: uncertainties regarding the ability to open
new locations; the Company’s ability to acquire additional rent-to-own stores
or customer accounts on favorable terms; the Company’s ability to control
costs and increase profitability; the Company’s ability to enhance the
performance of acquired stores; the Company’s ability to retain the revenue
associated with acquired customer accounts; the Company’s ability to identify
and successfully market products and services that appeal to its customer
demographic; the Company’s ability to enter into new and collect on its rental
or lease purchase agreements; the passage of legislation adversely affecting
the rent-to-own industries; the Company’s compliance with applicable statutes
or regulations governing its transactions; changes in interest rates; changes
in the unemployment rate; economic pressures, such as high fuel costs,
affecting the disposable income available to the Company’s current and
potential customers; the general strength of the economy and other economic
conditions affecting consumer preferences and spending; adverse changes in the
economic conditions of the industries, countries or markets that the Company
serves; changes in the Company’s stock price, the number of shares of common
stock that it may or may not repurchase, and future dividends, if any; changes
in estimates relating to self-insurance liabilities and income tax and
litigation reserves; changes in the Company’s effective tax rate; fluctuations
in foreign currency exchange rates; information security costs; the Company’s
ability to maintain an effective system of internal controls; the resolution
of the Company’s litigation; and the other risks detailed from time to time in
the reports filed by the Company with the U.S. Securities and Exchange
Commission, including but not limited to, its annual report on Form 10-K for
the year ended December 31, 2012 and its quarterly report on Form 10-Q for the
quarter ended March 31, 2013. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on which
they are made. Except as required by law, the Company is not obligated to
publicly release any revisions to these forward-looking statements to reflect
the events or circumstances after the date of this press release or to reflect
the occurrence of unanticipated events.

Contact:

Rent-A-Center, Inc.
David E. Carpenter, 972-801-1214
Vice President of Investor Relations
david.carpenter@rentacenter.com
 
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