Guggenheim Provides Committed Financing to Support the Acquisition of Rent-A-Center by Vintage Capital
June 25 2018 - 11:33AM
Guggenheim Investments, the global asset management and investment
advisory business of Guggenheim Partners, today announced it is
providing committed loan financing to support the acquisition of
Rent-A-Center, Inc. (NASDAQ/NGS:RCII) (“Rent-A-Center”) by Vintage
Capital Management, LLC (“Vintage Capital”). The transaction, which
is not subject to a financing condition, and is expected to close
by the end of 2018, subject to customary closing conditions
including the receipt of stockholder and regulatory approvals,
represents a total consideration of approximately $1.365 billion,
including net debt.
Guggenheim Investments will serve as joint lead bookrunner,
joint lead arranger and sole administrative agent for the
financing.1 B. Riley Financial is also providing debt and equity
commitments in support of the transaction.
“Guggenheim’s ability to respond quickly and thoughtfully with a
buy and hold capital solution was a valuable contributor to our
process. We are happy to be partnering on a transaction with
Guggenheim again as we look to take Rent-A-Center into the next
stage of its growth,” said Brian Kahn, Managing Partner and Founder
of Vintage Capital.
About Rent-A-Center, Inc.
A rent-to-own industry leader, Plano, Texas-based,
Rent-A-Center, Inc., is focused on improving the quality of life
for its customers by providing them the opportunity to obtain
ownership of high-quality, durable products 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 2,400
stores in the United States, Mexico, Canada and Puerto Rico, and
approximately 1,250 Acceptance Now kiosk locations in the United
States and Puerto Rico. Rent-A-Center Franchising International,
Inc., a wholly owned subsidiary of the Company, is a national
franchiser of approximately 250 rent-to-own stores operating under
the trade names of “Rent-A-Center,” “ColorTyme,” and “RimTyme.” For
additional information about the Company, please visit our website
at www.rentacenter.com.
About Vintage Capital
Vintage Capital is a value-oriented, operations-focused, private
and public equity investor specializing in the consumer, aerospace
and defense, and manufacturing sectors. Vintage is the controlling
shareholder of Buddy’s Newco LLC d/b/a Buddy’s Home Furnishings, a
privately-held rent-to-own company with over 300 locations across
the U.S. and Guam. For additional information about Vintage, please
visit www.vintcap.com. For additional information about Buddy’s
please visit www.buddyrents.com.
About Guggenheim Investments
Guggenheim Investments is the global asset management and
investment advisory division of Guggenheim Partners, with more than
$246 billion2 in total assets across fixed income, equity, and
alternative strategies. We focus on the return and risk needs of
insurance companies, corporate and public pension funds, sovereign
wealth funds, endowments and foundations, consultants, wealth
managers, and high-net-worth investors. Our 300+ investment
professionals perform rigorous research to understand market trends
and identify undervalued opportunities in areas that are often
complex and underfollowed. This approach to investment management
has enabled us to deliver innovative strategies providing
diversification opportunities and attractive long-term results.
1The information presented by Guggenheim Investments herein has
been prepared for informational purposes only and is not an offer
to buy or sell, or a solicitation of an offer to buy or sell, or a
recommendation or solicitation to tender or vote, any security or
fund interest and may not be relied upon in connection with the
purchase, sale, tender or vote of any security. You may not rely on
the information as the basis upon which to make an investment
decision or to enter into an advisory relationship with Guggenheim
Investments.
2Assets under management are as of 3/31/2018 and include
leverage of $12.2bn. In April 2018, Guggenheim Investments closed
the sale of the firm’s Exchange Traded Fund (“ETF”) business
representing $38.6bn in assets under management, which will be
reflected in the June 30, 2018 assets under management. Guggenheim
Investments represents the following affiliated investment
management businesses: Guggenheim Partners Investment Management,
LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors,
LLC, Guggenheim Funds Distributors, LLC, Guggenheim Real Estate,
LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and
Guggenheim Partners India Management.
Media ContactGerard CarneyGuggenheim
Investments310-871-9208gerard.carney@guggenheimpartners.com
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