UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
September 24, 1999 (September 15, 1999)
Date of Report (Date of earliest event reported)
Rent-Way, Inc.
(Exact name of registrant as specified in its charter)
Pennsylvania 000-22026 25-1407782
(State or other jurisdiction) (Commission File Number) (IRS Employer
of corporation) Identification No.)
One RentWay Place, Erie, Pennsylvania 16505
(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code: (814) 455-5378
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Item 5. Other Events
The registrant issued the following press release on September 15, 1999:
ERIE, PA. -- Rent-Way, Inc. (NYSE: RWY) announced today that it has entered into
a definitive agreement to acquire all of the stock of RentaVision, Inc., a
privately held rental-purchase chain. RentaVision operates 250 stores in 16
states, 50 of which have been opened during the past year. The purchase price is
approximately $98.0 million, of which $92.0 million is payable in a combination
of cash and assumption of liabilities and $6.0 million is payable in shares of
Rent-Way Common Stock. No other terms or details of the definitive purchase
agreement were disclosed. Closing of the transaction is expected to occur on or
about September 23, 1999, subject to completion of due diligence, necessary
antitrust clearance and satisfaction of other customary closing conditions.
If consummated, the acquisition of RentaVision will substantially expand
Rent-Way's presence in Pennsylvania and New York as well as introduce Rent-Way
to the New England states. William E. Morgenstern, President and Chief Executive
Officer of Rent-Way, said, "We are very excited about the new territories and
growth opportunities this latest transaction brings to Rent-Way. The RentaVision
management team has mastered new store start-ups and profitability in smaller
markets. This combination compliments our existing store locations and fits well
into our new store opening plan."
Financing for the acquisition will be provided by a $100.0 million amendment to
Rent-Way's existing credit facility. Jeffrey A. Conway, Senior Vice President
and Chief Financial Officer of Rent-Way said, "I am pleased with National City
Bank's and Bank of Montreal's commitment to finance the transaction on a senior
basis. The support we received from our entire bank syndicate speaks to their
confidence in Rent-Way's management team and proven track record."
Rent-Way operates 866 stores in 35 states under the brand names RentWay and
HomeChoice Rentals. Rent-Way rents quality, brand name merchandise such as home
entertainment equipment, furniture and major appliances on a week-to-week or
month-to-month basis under full service rental-purchase agreements that permit
the customer to acquire ownership of the merchandise at the conclusion of an
agreed upon rental period.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Rent-Way, Inc.
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(Registrant)
Date September 24, 1999 /s/ Jeffrey A. Conway
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Jeffrey A. Conway
Sr. Vice President and Chief Financial Officer
