King & Spalding advised Aaron’s Holdings Company, Inc. as it completed its spin-off of its Aaron’s Business segment. The spin-off resulted in the creation of two, independent publicly-traded companies: PROG Holdings, Inc. (NYSE: PRG) (“Progressive”) and The Aaron’s Company, Inc. (NYSE: AAN) (“Aaron’s”), both of which opened for trading this morning on the NYSE. In the spin-off, Progressive shareholders received one share of Aaron’s common stock for every two shares of Progressive common stock held by them.
In connection with the spin-off transaction, both Aaron’s and Progressive entered into new debt facilities to finance the two separate go-forward businesses. Aaron’s entered into (i) a $250 million senior unsecured revolving credit facility with Truist Bank as administrative agent, and (ii) a $25 million senior unsecured franchise loan facility agreement with Truist Bank as servicer. Progressive entered into a $350 million senior unsecured revolving credit facility with JPMorgan Chase Bank, N.A. as administrative agent.