Conn’s (CONN) has released an update to notify the public and investors about an entry into a material definitive agreement.
On January 26, 2024, Conn’s, Inc. affiliates completed a securitization transaction involving the private sale of various Asset Backed Fixed Rate Notes, maturing in 2029 with values and interest rates ranging from $133,490,000 at 7.05% to $27,760,000 at 10.34%. Secured by a portfolio of customer receivables valued at approximately $353.6 million, the proceeds of $252.5 million will be used for corporate purposes and debt repayment. The instruments were rated by Fitch Ratings and are supported by credit enhancements, with the potential for future sale of retained Class R Notes. The transaction entailed a series of sales and contributions of customer contracts through a specially created trust and entity, with a servicing agreement for managing the receivables.
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For a comprehensive understanding of the announcement, you can read the full document here.
