S&C Advises Rent-A-Center on Agreement To Acquire Fintech Company Acima for $1.65 BillionDecember 30, 2020
On December 20, Rent-A-Center Inc. entered into an agreement to acquire Acima Holdings LLC for $1.65 billion, consisting of $1.25 billion in cash and the remainder in Rent-A-Center stock. In connection with this transaction, Rent-A-Center arranged for $1.825 billion of debt financing commitments consisting of a $575 million seven-year senior secured term loan facility, a $300 million senior secured bridge to bond facility, a $450 million senior unsecured bridge to bond facility and a $500 million senior secured ABL backstop facility. This transaction follows the successful 2019 recapitalization of the company's debt.
Rent-A-Center is an industry-leading lease-to-own provider that owns and operates approximately 1,950 stores in the United States, Mexico and Puerto Rico and is a national franchiser of approximately 460 locations. Acima is a lease-to-own fintech company with a national presence in retail partner stores and e-commerce platforms and a broad range of product verticals.
The S&C team representing Rent-A-Center includes Alison Ressler and Sarah Payne. Ari Blaut and special counsel John Anselmi are advising on financing matters; Matthew Friestedt and special counsel Rebecca Coccaro are advising on executive compensation and benefits matters; Nader Mousavi is advising on intellectual property matters; Ron Creamer is advising on tax matters; Renata Hesse and special counsel Eric Queen are advising on antitrust matters; special counsel Stephen Meyer is advising on regulatory matters; and Rita O'Neill is advising on R&W insurance matters.