Aaron's amends revolving credit facility to push out maturity to 2017

By Jennifer Chiou

New York, Dec. 19 - Aaron's Inc. entered into on Dec. 13 an amendment to its revolving credit agreement, extending the maturity to Dec. 13, 2017, according to an 8-K filed with the Securities and Exchange Commission.

SunTrust is the administrative agent.

The credit agreement provides for up to $140 million of borrowings, including letters of credit and a swingline loan subfacility.

The amendment also, among other things, added provisions on lenders to further define instances of lender default and increased the dollar thresholds for certain negative covenants, events of default and reporting and notice requirements to make them less restrictive.

Further, the changes also provided for the removal of certain financial covenants in the event that the agreement governing the company's privately placed debt securities are amended to remove substantially similar covenants.

The amendment also increased pricing to a margin of 100 basis points to 150 bps, depending on the company's total debt to EBITDA ratio. The unused fee ranges from 15 bps to 30 bps.

Also on Dec. 13, the company amended its franchisee loan facility to, among other things, extend the maturity date to Dec. 12, 2013, increase the maximum Canadian subfacility commitment amount to C$50 million from C$35 million.

Aaron's is an Atlanta-based specialty retailer of consumer electronics, computers, residential and office furniture, household appliances and accessories.

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