Aaron’s reduces revolver to $275 million, amends for covenant changes

Chicago, Feb. 26 – Aaron’s Co., Inc. announced an amendment to its April 1, 2022 credit agreement in an 8-K filing with the Securities and Exchange Commission regarding the Feb. 23 transaction.

The amendment reduces commitments under the revolver to $275 million from $375 million.

Further, the credit facility loan parties are now required to deliver a security and pledge agreement and grant a first-priority lien on substantially all of their respective assets.

The amendment also amends the existing fixed-charge coverage ratio covenant to lower the required minimum threshold for each of the fiscal quarters starting with the first quarter of 2024 to the fourth quarter of 2027.

Truist Bank is the administrative agent.

Under the agreement, Truist Securities, Inc., JPMorgan Chase Bank, NA, BofA Securities, Inc. and Citizens Bank, NA were the joint lead arrangers and joint bookrunners.

JPMorgan Chase Bank, NA, Bank of America, NA and Citizens Bank, NA were listed as the co-syndication agents.

Fifth Third Bank, NA and Regions Bank were the co-documentation agents.

Aaron’s is an Atlanta-based lease-to-own furniture retailer.

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