NEW YORK, June 25, 2018 (GLOBE NEWSWIRE) -- 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 Contact
Gerard Carney
Guggenheim Investments
310-871-9208
gerard.carney@guggenheimpartners.com
