Conn's, Inc. Involves Issuance and Sale in a Private Offering of 2.66% $317,150,000 Asset Backed Fixed Rate Notes
November 27, 2019 at 04:12 pm EST
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On November 26, 2019, affiliates of Conn's, Inc. completed a securitization transaction (the "Securitization Transaction"), which involved the issuance and sale in a private offering of 2.66% $317,150,000 Asset Backed Fixed Rate Notes, Class A, Series 2019-B, due June 17, 2024 (the "Class A Notes"), 3.62% $85,540,000 Asset Backed Fixed Rate Notes, Class B, Series 2019-B, due June 17, 2024 (the "Class B Notes") and 4.60% $83,270,000 Asset Backed Fixed Rate Notes, Class C, Series 2019-B, due June 17, 2024 (the "Class C Notes" and, together with the Class A Notes and the Class B Notes, the "Purchased Notes"), and the issuance of Asset Backed Notes, Class R, Series 2019-B (the "Class R Notes" and, collectively with the Purchased Notes, the "Series 2019-B Notes"). The Series 2019-B Notes were issued by Conn's Receivables Funding 2019-B, LLC, a newly formed special purpose entity that is indirectly owned by the Company (the "Issuer"). The Series 2019-B Notes are secured by a portfolio of approximately $568,366,183.52 of customer receivables sold and contributed from the Company's loan portfolio indirectly to Conn's Receivables 2019-B Trust (the "Receivables Trust"), a newly formed Delaware statutory trust. Net proceeds from the offering (after deducting the underwriting discount payable to the Initial Purchasers) were $482,788,463.16 and will be used to repay indebtedness under the Company's asset-based credit facility and for other general corporate purposes.
Conn's, Inc. is a specialty retailer of home goods, including furniture and mattresses, appliances, and consumer electronics. The Company offers branded durable consumer goods and related services in addition to proprietary credit solutions for its core consumers. The Company operates in two segments: retail and credit. The retail segment operates primarily through its stores and Website. The retail segment product offerings include furniture and mattresses, home appliances, consumer electronics and home office products from global brands across a wide range of price points. The credit segment offers financing solutions to a large, under-served population of credit-constrained consumers who typically have limited credit alternatives. Its home appliances include refrigerators, freezers, washers, dryers, dishwashers, and ranges. Its furniture and mattresses include furniture and related accessories for the living room, dining room and bedroom, as well as both flat mattresses.
CONN'S, INC. 
