PROG Holdings, Inc. (PRG): M&A transaction — PROG Holdings closes $420M cash acquisition of Purchasing Power; $125M term loan added

PROG Holdings, Inc.

Acquired Purchasing Power for $420M cash, funded via $125M incremental term loan, $135M revolver borrowings, and cash on hand.
Purchasing Power adds over 360 employer partnerships and access to 7M employees for voluntary benefit payroll-deduction products.
Existing non-recourse securitization and warehouse debt of ~$330M remains in place at the acquired entity.
Fourth Amendment to credit agreement: max total net leverage ratio set at 3.25x for FY2026, 3.00x for FY2027, then 2.50x.
Pricing on SOFR loans updated to margin range of 1.50%-2.75%; commitment fees on unused revolver set at 0.25%-0.50%.

item 1.01 item 2.01 item 2.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

PROG Holdings, Inc. incurred term loan of $125 million incremental term loan with JPMorgan Chase Bank, N.A. at SOFR plus a margin within the range of 1.50% to 2.75% maturing November 15, 2029.

Instrument: term loan
Principal: $125 million incremental term loan
Counterparty: JPMorgan Chase Bank, N.A.
Rate: SOFR plus a margin within the range of 1.50% to 2.75%
Maturity: November 15, 2029
Event: incurrence

Exact text from the filing

The Fourth Amendment provides for, among other things, the incurrence by the Company of a $125 million incremental term loan (the "Term Loan"),

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M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

PROG Holdings, Inc. completed an acquisition involving Purchasing Power Parent, LLC for approximately $420 million in cash (closed 2026-01-02).

Action: acquisition
Counterparty: Purchasing Power Parent, LLC
Consideration: approximately $420 million in cash
Closing: 2026-01-02

Exact text from the filing

Current Report on Form 8-K is incorporated into this Item 2.01 by reference. The aggregate consideration paid by the Purchaser to the Seller at the closing was approximately $420 million in cash, subject to customary adjustments. In addition, the Acquired Entity has approximately $330 million of non-recourse funding debt under its securitization and warehouse

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

PROG Holdings, Inc. amended Fourth Amendment with JPMorgan Chase Bank, N.A, as administrative agent valued at $125 million incremental term loan (effective 2026-01-02).

Action: amendment
Agreement: credit facility
Counterparty: JPMorgan Chase Bank, N.A, as administrative agent
Value: $125 million incremental term loan
Effective: 2026-01-02

Exact text from the filing

On January 2, 2026, the Company entered into a fourth amendment (the "Fourth Amendment") to that certain credit agreement, dated November 24, 2020, by and among Progressive Finance Holdings, LLC, as borrower, the Company and certain subsidiaries of the Company, as guarantors, the several banks and other financial institutions from time to time party thereto and JPMorgan Chase Bank, N.A, as administrative agent (as amended, the "Credit Agreement").

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PROG Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001808834-26-000002

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