Aaron Rents Sets Pricing for Public Stock Offering

May 18, 2006  by in UnCategorized   

By Home Furnishings Business in on May 2006 Atlanta-based rent-to-own retailer Aaron Rents has set the pricing of its public offering of 4 million shares of non-voting common stock at $25.75.

Of the total shares to be offered, 3 million are being offered by the company, and the other million shares are being offered by Charlie Loudermilk, chairman and chief executive officer.

Aaron Rents and Loudermilk have also granted to the underwriters an option to purchase an additional 450,000 and 150,000 shares, respectively, within 30 days after the offering to cover over allotments. The net proceeds from the sale of the 3 million shares sold by the company will be used to repay bank debt and for general corporate purposes. The offering is expected to close May 24.

SunTrust Robinson Humphrey is the sole book-running manager for the offering, and Morgan Keegan & Co. is co-lead manager. Stifel Nicolaus, Wachovia Securities and BB&T Capital Markets are co-managers. A copy of the final prospectus relating to these securities may be obtained from SunTrust Robinson Humphrey.

The company has more than 1,225 company operated and franchised stores in 46 states, Canada and Puerto Rico.