Conn’s, Inc. Announces Securitization Transaction

THE WOODLANDS, Texas–(BUSINESS WIRE)–Conn’s, Inc. (NASDAQ:CONN), today announced that it has entered
into an agreement to securitize $1.4 billion of retail installment
contract receivables, with closing expected on or about September 10,

The face amount of the notes to be issued in the securitization is $1.12
billion, with an advance rate of 77.5% of the outstanding customer
receivables portfolio balance, or approximately 89.5% of net book value
at July 31, 2015. Net book value reflects not only the bad debt reserve,
but also interest deferrals, allowances for cash option loans (specific
loans on which customers can earn a waiver of interest), and allowances
for charged off interest. Conn’s will receive upfront proceeds of
approximately $1.08 billion, net of transaction costs and reserves. The
notes are not rated and the all-in cost of funds is 9.1%. The coupon
rate to investors is 6.03%, with the difference to the all-in cost of
funds driven by the transaction being a bought deal versus a marketed
deal and the relatively short term over which the costs of the deal will
be amortized. The securitization transaction did not include the
residual equity in the securitization portfolio, which may be sold in a
separate transaction or retained by Conn’s.

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 and sold in the
United States in accordance with Rule 144A under the Securities Act.
This press release shall not constitute an offer to sell or the
solicitation of any offer to buy nor shall there by any sale of the
notes in any jurisdiction in which such offer, solicitation or sale
would be unlawful under the laws of such jurisdiction.

About Conn’s, Inc.

Conn’s is a specialty retailer currently operating approximately 95
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 LCD, LED, 3-D and Ultra HD
    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.

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that
involve risks and uncertainties. Such forward-looking statements include
information concerning the Company’s future financial performance,
business strategy, plans, goals and objectives. Statements containing
the words “anticipate,” “believe,” “could,” “estimate,” “expect,”
“intend,” “may,” “plan,” “project,” “should,” or the negative of such
terms or other similar expressions are generally forward-looking in
nature and not historical facts. Although we believe that the
expectations, opinions, projections, and comments reflected in these
forward-looking statements are reasonable, we can give no assurance that
such statements will prove to be correct, and actual results may differ
materially. A wide variety of potential risks, uncertainties, and other
factors could materially affect the Company’s ability to achieve the
results either expressed or implied by the Company’s forward-looking
statements including, but not limited to: general economic conditions
impacting the Company’s customers or potential customers; the Company’s
ability to close the securitization of its loan portfolio or to sell the
residual equity on favorable terms; the Company’s ability to execute
periodic securitizations of future originated loans including the sale
of any residual equity on favorable terms; the Company’s ability to
continue existing customer financing programs or to offer new customer
financing programs; changes in the delinquency status of the Company’s
credit portfolio; unfavorable developments in ongoing litigation;
increased regulatory oversight; higher than anticipated net charge-offs
in the credit portfolio; the success of the Company’s planned opening of
new stores; technological and market developments and sales trends for
the Company’s major product offerings; the Company’s ability to protect
against cyber-attacks or data security breaches and to protect the
integrity and security of individually identifiable data of the
Company’s customers and employees; the Company’s ability to fund its
operations, capital expenditures, debt repayment and expansion from cash
flows from operations, borrowings from the Company’s revolving credit
facility, and proceeds from accessing debt or equity markets; and the
other risks detailed in the Company’s most recent SEC reports, including
but not limited to, the Company’s Annual Report on Form 10-K and the
Company’s Quarterly Reports on Form 10-Q and Current Reports on Form
8-K. If one or more of these or other risks or uncertainties materialize
(or the consequences of such a development changes), or should our
underlying assumptions prove incorrect, actual outcomes may vary
materially from those reflected in our forward-looking statements. You
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. We
disclaim any intention or obligation to update publicly or revise such
statements, whether as a result of new information, future events or
otherwise. All forward-looking statements attributable to us, or to
persons acting on our behalf, are expressly qualified in their entirety
by these cautionary statements.



S.M. Berger & Company
Andrew Berger, (216) 464-6400