United Rentals Enters Into Amended Asset-Based Loan Facility
United Rentals, Inc., United Rentals (North America), Inc. and certain of their subsidiaries announced that they entered into an amended and restated credit agreement that provides for a senior secured asset-based loan facility of $1,800 million, a portion of which is available for borrowing in Canadian dollars.
The amended and restated credit agreement also provides for an uncommitted incremental increase in the ABL facility of up to $500 million. 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 1.75% to 2.25% or at a base rate plus a margin of 0.75% to 1.25%.
The ABL facility matures on October 13, 2016. At closing, approximately $800 million was drawn and the borrowers had approximately $1,000 million available for additional borrowings, subject to borrowing base limitations.
United Rentals is an equipment rental company with an integrated network of 539 rental locations in 48 states and ten Canadian provinces.
