Conn's Completes Refinancing Plan - Twice

Conn's Completes Refinancing Plan

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Beaumont, Texas - Multiregional CE and appliance chain Conn's has refinanced its debt under a previously announced plan that extends the maturity dates of its loans by more than three years.

The refinancing plan includes an expanded asset-based loan facility of $375 million, and a new $100 million senior secured second lien term loan, with maturity dates in 2013 and 2014, respectively.

In conjunction with the debt facilities, the company completed a $25 million common stock rights offering. Conn's said it used a portion of the net proceeds from the borrowing facilities and the rights offering to repay the outstanding debt balances under the company's existing asset-backed securitization program.

"We are very pleased with our ability to complete this critical refinancing transaction, despite the challenging financial market conditions," said Conn's president/CEO Tim Frank. "We are very fortunate to have the continued support of our long-term financial relationships and are very appreciative of the new relationships we are beginning with these transactions."

Stephens Inc. acted as financial advisor in connection with the transactions and Robert W. Baird & Co. acted as financial advisor to a committee of the company's board in connection with the rights offering.

Bank of America Merrill Lynch and JPMorgan Chase acted as joint book runners and co-lead arrangers for the asset-based loan facility, with Bank of America Merrill Lynch also acting as the administrative and collateral agent. JPMorgan Chase and Wells Fargo Preferred Capital will act as co-syndication agents, while Capital One, N.A. and Regions Business Capital will act as co-documentation agents. The other participants in the facility include Amegy Bank, BBVA Compass, CommunityBank of Texas, N.A., First Tennessee Bank National Association and Union Bank, N.A.

GA Capital, a subsidiary of Great American Group, will act as the administrative agent and collateral agent for the term loan facility. The lenders include funds managed by Tennenbaum Capital Partners, a multi-strategy alternative investment management firm; GB Merchant Partners' Debt Investment Group, an affiliate of Gordon Brothers Group; and the Retail Junior Capital division of Wells Fargo Capital Finance.

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