Conn’s, Inc. (NASDAQ: CONN), a specialty retailer of home appliances, furniture, mattresses, consumer electronics and provider of consumer credit, today announced that it completed an expansion and extension of its asset-based loan facility with a syndicate of banks.
Under the amended terms, the revolving facility commitment increased $75 million to $525 million and the maturity date was extended to September 2016. Borrowing costs under the facility are reduced and borrowing availability is improved. The Company estimates, based on its current debt balance and current market rates, the above transaction will benefit diluted earnings per share by approximately $0.02 on an annual basis.
“Our improved operating performance and financial condition provided us with the opportunity to increase the capacity and extend the term of our revolving credit facility,” stated Theodore M. Wright, Chairman and CEO. “This amendment to the facility delivers flexibility to pursue our growth strategies, while lowering our borrowing costs.”
About Conn’s, Inc.
The Company is a specialty retailer currently operating 65 retail locations in Texas, Louisiana and Oklahoma: with 22 stores in the Houston area, 14 in the Dallas/Fort Worth Metroplex, seven in San Antonio, three in Austin, one in Waco, five in Southeast Texas, one in Corpus Christi, four in South Texas, six in Louisiana and two in Oklahoma. The Company’s primary product categories include:
- Home appliance, including refrigerators, freezers, washers, dryers, dishwashers, ranges and room air conditioners;
- Furniture and mattress, including furniture for the living room, dining room, bedroom and related accessories and mattresses;
- Consumer electronic, including LCD, LED, 3-D, plasma and DLP televisions, camcorders, digital cameras, Blu-ray players, video game equipment, portable audio and home theater products; and
- Home office, including desktop and notebook computers, tablets, printers and computer accessories.
Additionally, the Company offers a variety of products on a seasonal basis, including lawn and garden equipment, and continues to introduce additional product categories for the home to help respond to its customers' product needs and to increase same store sales. Unlike many of its competitors, the Company provides flexible in-house credit options for its customers, in addition to third-party financing programs and third-party rent-to-own payment plans. In the last three years, the Company financed, on average, approximately 61%, including down payments, of its retail sales under its in-house financing plan.