ATLANTA, July 27 /PRNewswire-FirstCall/ -- Aaron Rents, Inc. (NYSE: RNT),
the nation's leader in the rental, sales and lease ownership, and specialty
retailing of residential and office furniture, consumer electronics and home
appliances and accessories, today announced that it has completed a
$60 million private placement of debt to Prudential Capital Group, a private,
fixed-income investment business of Prudential Financial, Inc. (NYSE: PRU).
The debt consists of 5.03% senior unsecured notes due July 2012, with
interest only payments the first two years followed by annual $12 million
principal repayments plus interest for the next five years.
"This private placement of debt, our second in the past three years, gives
us additional long-term debt financing at historically low borrowing rates,"
said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer of Aaron
Rents. "These funds will initially replace shorter term borrowings under our
revolving credit agreement and will provide additional financial resources to
enable us to continue the rapid growth of the Company," Mr. Loudermilk added.
Aaron Rents, Inc. based in Atlanta, currently has more than 1,110 Company-
operated and franchised stores in 45 states, Canada, and Puerto Rico for the
rental and sale of residential and office furniture, accessories, consumer
electronics and household appliances. The Company also manufactures furniture,
bedding and accessories at 10 facilities in four states.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this news release regarding Aaron Rents, Inc.'s
business which are not historical facts are "forward-looking statements" that
involve risks and uncertainties which could cause actual results to differ
materially from those contained in the forward-looking statements. These
risks and uncertainties include factors such as changes in general economic
conditions, competition, pricing, customer demand and other issues, and the
risks and uncertainties discussed under "Certain Factors Affecting Forward
Looking Statements" in the Company's Annual Report on Form 10-K for fiscal
2004, which discussion is incorporated herein by this reference.
SOURCE Aaron Rents, Inc.
CONTACT:
Gilbert L. Danielson
Executive Vice President, Chief Financial Officer
Aaron Rents, Inc.
+1-404-231-0011, ext. 3334
Web site: http://www.aaronrents.com
(RNT PRU)