Aaron’s extends facility by one year, cuts commitments to $125 million

By Marisa Wong

Morgantown, W.Va., Dec. 12 – Aaron’s, Inc. amended its loan facility agreement dated April 14, 2014 with SunTrust Bank on Dec. 6 to extend the termination date and reduce the maximum commitment available, according to an 8-K filed Monday with the Securities and Exchange Commission.

The amendment extends the termination date by an additional 364 days to Dec. 7, 2017 from Dec. 8, 2016 and reduces the maximum commitment available to $125 million from $175 million.

The amendment also reduces the Canadian subfacility limit to $25 million from $50 million and adds and modifies some other terms, covenants and conditions, the filing noted.

The reductions in the maximum commitment under facility and the Canadian subfacility limit were made at the company’s request, primarily to reduce the amount of fees paid on the unused portion of the commitment.

Under the loan facility, the company’s franchisees can borrow funds guaranteed by the company.

Aaron’s is an Atlanta-based sales and lease ownership company and specialty retailer of consumer electronics, computers, residential and office furniture, household appliances and accessories.

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