Rent-A-Center, Inc. (NASDAQ:RCII) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
Third Amendment and Waiver (the “Waiver”) with JPMorgan Chase
Bank, N.A., as administrative agent (JPMorgan) and the other
lenders party thereto to which the lenders agreed to waive
compliance with certain provisions in the Credit Agreement, dated
March 19, 2014, among the Company, the lenders party thereto and
JPMorgan, as administrative agent, permitting the Company to
exceed the required fixed charge coverage ratio and total
leverage ratio covenants, in each case for the quarter ending
March 31, 2017. The foregoing description of the Waiver is
qualified in its entirety by reference to the full text of the
Waiver, a copy of which is filed as Exhibit 10.1 hereto and
incorporated herein by reference.
reflecting earnings information for the quarter ended March 31,
2017.
before interest, taxes, depreciation and amortization), which is a
non-GAAP financial measure as defined in Item 10(e) of Regulation
S-K. The press release also contains a reconciliation of EBITDA to
the Registrant’s reported earnings before income taxes. The
Company’s management believes that presentation of EBITDA is
useful to investors, as among other things, this information
impacts certain financial covenants under the Company’s senior
credit facilities and the indentures governing its 6.625% senior
unsecured notes due November 2020 and its 4.75% senior unsecured
notes due May 2021. While management believes this non-GAAP
financial measure is useful in evaluating the Company, this
information should be considered as supplemental in nature and not
as a substitute for or superior to the related financial
information prepared in accordance with GAAP. Further, the non-GAAP
financial measure may differ from similar measures presented by
other companies.
contained in Item 2.02 of this Form 8-K and the accompanying
Exhibit 99.1 shall be deemed to be “furnished” and not “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934,
as amended, and, therefore, shall not be incorporated by reference
in any filing under the Securities Act of 1933, as amended.
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Exhibit 10.1
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Third Amendment and Waiver, dated May 1, 2017, among
Rent-A-Center, Inc., as borrower, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. |
About Rent-A-Center, Inc. (NASDAQ:RCII)
Rent-A-Center, Inc. is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico and Franchising. Its Core U.S. and Mexico stores generally offer merchandise from over five basic product categories: consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories). The Acceptance Now segment provides an on-site rent-to-own option at a third-party retailer’s location. Its Franchising segment engages in the sale of rental merchandise to its franchisees who, in turn, offer the merchandise to the general public for rent or purchase under a rent-to-own transaction. It offers brands, such as LG, Frigidaire, Acer, Apple, Asus, Samsung, Ashley, Powell and Standard. Rent-A-Center, Inc. (NASDAQ:RCII) Recent Trading Information
Rent-A-Center, Inc. (NASDAQ:RCII) closed its last trading session down -0.02 at 10.67 with 4,591,560 shares trading hands.
