Overview

Purple Apple is a newly formed entity formed by Directional Capital to acquire a select group of Rent-A-Center stores across the New York and New Jersey markets. The stores were purchased from Upbound Group, Inc., the franchisor of Rent-A-Center.

Situation

Directional Capital, which is an independent, minority owned private investment firm, used the new credit facility to finance the acquisition of 55 stores and provide additional liquidity for general corporate purposes.

Solution

SLR Credit Solutions structured a unitranche asset-based credit facility to support Directional Capital’s acquisition of the stores.

The financing has a first lien on all assets of Purple Apple and was supported by the rent-to-own contracts, and in-store/on-hand inventory.