Rent-A-Center (RCII) Announces $200M Accelerated Stock Buyback

May 2, 2013 5:33 PM EDT
Rent-A-Center, Inc. (NASDAQ: RCII) announced that it has entered into an agreement with Goldman, Sachs & Co. to repurchase $200 million of the Company’s common stock under an accelerated stock buyback program. 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.

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