Business
Rent-A-Center, Inc. Declares Quarterly Cash Dividend of $0.29 for the Third Quarter of 2020 and Announces Full Repayment of ABL Credit Facility
PLANO, Texas--(BUSINESS WIRE)-- Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS: RCII) today announced that its Board of Directors has approved a quarterly
About this update from Upbound Group, Inc.
[{"type":"text","content":" PLANO, Texas--(BUSINESS WIRE)--\nRent-A-Center, Inc. (the “Company”) (NASDAQ/NGS: RCII) today announced that its Board of Directors has approved a quarterly cash dividend of $0.29 per share for the third quarter of 2020. The dividend will be paid on July 28, 2020 to the Company’s common stockholders of record as of the close of business on July 10, 2020.\n\n\nAdditionally, as of June 5, 2020, the Company has repaid all borrowings under its ABL Credit Facility. As previously disclosed, in March 2020, as a precautionary measure given the uncertainty from the COVID-19 pandemic, the Company drew approximately $118 million against its ABL Credit Facility to enhance financial flexibility and increase available cash on hand. The Company has now repaid all funds drawn on the facility for a total debt paydown of $163 million.\n\n\nFollowing the repayment of the ABL Credit Facility, the Company is projected to end the second quarter with approximately $195 million in cash on hand and total liquidity of approximately $405 million. Total debt at the end of the period is expected to include our existing term loan of $199 million resulting in net debt of approximately $5 million as of June 30, 2020.\n\n\n“Our sales trends and recurring revenue portfolio performance remains stronger than we expected at the beginning of the pandemic. Over the recent months, we have once again seen the strength of our recession resilient business model, tremendous growth in our ecommerce business and the emerging benefit of having essentially all of our Rent-A-Center and retail partner stores fully opened. We are pleased to have been able to fully repay our revolver while maintaining our strategy to return cash to shareholders. We will continue to stay laser focused on adapting, innovating and executing. We look forward to providing our more detailed quarterly earnings update when we release our second quarter earnings after the market closes on August 5th,” said Mitch Fadel, Chief Executive Officer, Rent-A-Center, Inc.\n\n\nAbout Rent-A-Center, Inc.\n\n\nRent-A-Center, Inc. (NASDAQ: RCII) is an industry leading omni-channel lease-to-own provider for the credit constrained customer. The Company’s mission is to improve the quality of life for its customers by providing access and the opportunity to obtain ownership of high-quality, durable products under a flexi...