FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Essex Rental Modifies Coast Crane Credit Facility With GE Capital, Others

February 27, 2014, 07:13 AM
Filed Under: Rental News

Essex Rental Corp. announced that it entered into an amendment to its Coast Crane credit agreement. The modification to the credit agreement provides Essex with greater flexibility to capitalize on opportunities to increase revenues associated with the sale of new equipment. The modification also amends language in the existing credit agreement related to the application of asset sale proceeds from new and used equipment sales.

To view the SEC filing from Feb. 21, which names GE Capital as agent on the Coast Crane facility, click here.

Kory Glen, Chief Financial Officer stated, "The amendment to the revolving credit facility will allow us to take advantage of opportunities to grow our new equipment distribution business. In our experience, new equipment sales are enhanced if we are able to carry new equipment for resale in inventory. Prior to amending our loan agreement, we were limited in the amount of new equipment for resale that we could purchase, because such purchases were deemed capital expenditures, and therefore, were included in the calculation of our fixed charges. As a result of the loan amendment, these purchases are now deemed inventory and are not included in our fixed charge ratio. The loan modification will provide us with greater flexibility to capitalize on opportunities within this segment of our business."

Glen continued, "Additionally, we clarified language in our loan agreement to ensure that we are not required to use the proceeds from the sale of new or used equipment to permanently reduce debt."

Essex, through its subsidiaries, is one of North America's largest providers of rental and distribution for mobile cranes (including lattice-boom crawler cranes, truck cranes and rough terrain cranes), self-erecting cranes, stationary tower cranes, elevators and hoists, and other lifting equipment used in a wide array of construction projects. In addition, the Company provides product support including installation, maintenance, repair, and parts and services for equipment provided and other equipment used by its construction industry customers.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.