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United Rentals in New Asset-Based Loan Facility

April 01, 2015, 06:46 AM
Filed Under: Rental

United Rentals, Inc. and certain of their subsidiaries announced they entered into a Second Amended and Restated Credit Agreement which provides for a senior secured asset-based loan facility of $2,500 million, a portion of which is available for borrowing in Canadian Dollars. The Second Amended and Restated Credit Agreement also provides for an uncommitted incremental increase in the ABL Facility of up to $1,250 million or more, depending on the value of borrowing base assets in excess of the initial maximum amount of the facility. The ABL Facility replaces the company’s existing senior secured asset-based loan facility.

Certain of the company’s subsidiaries have provided guarantees under the ABL Facility. In addition, obligations under the facility are secured by certain first-priority security interests in the assets of the borrowers and the guarantors. Amounts drawn bear annual interest at either the LIBOR rate plus a margin of 1.25% to 1.75% or at a base rate (equal to the highest of Bank of America’s prime rate, the federal funds rate plus 0.5%, or 30-day LIBOR plus 1.0%) plus a margin of 0.25% to 0.75%.

The ABL Facility matures on March 31, 2020. At closing, approximately CAD $138 million was drawn and the borrowers had approximately $2,341 million available for additional borrowings, subject to borrowing base limitations.

United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 881 rental locations in 49 states and 10 Canadian provinces.

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