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Conn’s Completes Refinancing Plan

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

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.