Conn’s, Inc. announced that it has closed the securitization transaction announced on March 14, 2016. The offering included (a) three classes of asset-backed fixed rate notes: (i) Class A notes which were rated BBBsf by Fitch, (ii) Class B notes which were rated BBsf by Fitch, and (iii) Class C notes which were rated Bsf by Fitch, and (b) one class, Class R, of asset-backed pass-through notes which represent the residual equity. The face amount of the Class A and Class B notes issued in the securitization is approximately $494 million, with an aggregate advance rate of 70% of the outstanding customer receivables portfolio balance. Conn’s received upfront proceeds of approximately $478 million, net of transaction costs and reserves. The Class A and Class B notes have an all-in cost of funds of approximately 7.8%, after considering all underwriting discounts and expenses. The Class C notes and Class R notes are currently being retained by a subsidiary of the Company.

The notes will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The notes will be offered only (i) within the United States to persons who are qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended, and (ii) solely with respect to the Class A Notes, to certain non-U.S. persons in offshore transactions in reliance on Regulation S under such Act.

Conn’s is a specialty retailer currently operating approximately 100 retail locations in Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. The Company’s primary product categories include:

• Furniture and mattress, including furniture and related accessories for the living room, dining room and bedroom, as well as both traditional and specialty mattresses;
• Home appliance, including refrigerators, freezers, washers, dryers, dishwashers and ranges;
• Consumer electronics, including LED, OLED, Ultra HD, and internet-ready televisions, Blu-ray players, home theater and portable audio equipment; and
• Home office, including computers, printers and accessories.

Additionally, Conn’s offers a variety of products on a seasonal basis. Unlike many of its competitors, Conn’s provides flexible in-house credit options for its customers in addition to third-party financing programs and third-party rent-to-own payment plans.