Conn’s, Inc., specialty retailer of home appliances, furniture, mattresses and consumer electronics via 65 locations in Texas, Oklahoma and Louisiana, has announced an expansion and extension of its asset-based loan facility that will allow it to pursue growth strategies. Under the amended terms, the revolving facility commitment from a syndicate of banks increased by $75 million to $525 million, and the maturity date was extended to September 2016, the company noted.
Conn’s estimates, based on its current debt balance and market rates, that the transaction will benefit diluted earnings per share by about two cents on an annual basis, the company stated.
“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,” Theodore Wright, Conn’s chairman and CEO, said in announcing the development. “This amendment to the facility delivers flexibility to pursue our growth strategies while lowering our borrowing costs.”