Rent-A-Center Announces Accelerated Stock Buyback

  Rent-A-Center Announces Accelerated Stock Buyback

Business Wire

PLANO, Texas -- May 2, 2013

Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS: RCII) today announced that it
has entered into an agreement with Goldman, Sachs & Co. (“Goldman Sachs”) to
repurchase $200 million of the Company’s common stock under an accelerated
stock buyback program (the “ASB transaction”). The Company is purchasing these
shares as part of its previously authorized $1.25 billion common stock
repurchase plan. Proceeds from the Company’s recently completed debt offering
will be used to fund the ASB transaction.

Under the agreement, the Company is scheduled to pay $200 million to Goldman
Sachs on May 7, 2013 and to receive approximately 4.6 million shares,
currently estimated to represent approximately 80% of the shares expected to
be purchased in the ASB transaction. The total number of shares that the
Company ultimately purchases in the ASB transaction will be determined based
on the average of the daily volume-weighted average share price of its common
stock over the duration of the ASB transaction, less an agreed discount, and
is subject to certain adjustments under the agreement.

The agreement contemplates that final settlement is expected to occur in or
before February 2014, although the completion date may be accelerated or
extended. At settlement, the Company may be entitled to receive additional
shares of its common stock from Goldman Sachs or, under certain circumstances,
may be required to deliver shares or make a cash payment (at its option) to
Goldman Sachs.

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.


Rent-A-Center, Inc.
David E. Carpenter, 972-801-1214
Vice President of Investor Relations
Press spacebar to pause and continue. Press esc to stop.