Aaron’s has $200 million loan commitment for BrandsMart acquisition

Chicago, Feb. 23 – Aaron’s Co., Inc. said that it has a commitment for a $200 million loan to help fund the $230 million cash purchase price for the acquisition of BrandsMart U.S.A., according to a press release on Wednesday evening.

Funding will come both from the new term loan and cash.

Truist Bank, Bank of America, NA, JPMorgan Chase Bank, NA and Citizens Bank, NA have provided the commitment. All four banks are currently lenders on Aaron’s existing senior credit facility.

The financing commitment is expected to be structured as a term loan with a Nov. 9, 2025 maturity date.

The initial rate is expected to be SOFR plus 175 basis points.

The acquisition transaction is expected to close in the second quarter of 2022.

BofA Securities, Inc. is acting as financial adviser to Aaron's and Jones Day is acting as legal adviser. Cassel Salpeter & Co., LLC is acting as financial adviser to BrandsMart and Cooley LLP is acting as legal adviser.

Aaron’s is an Atlanta-based lease-to-own furniture retailer. BrandsMart is an appliance and consumer electronics retailer in the southeast United States.

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