EquipmentShare Closes $3B Revolving Credit Facility with Capital One

EquipmentShare increased its borrowing capacity from $2.1 billion to $3 billion through a senior secured asset-based revolving credit facility with Capital One and closed its debut offering of $640 million of senior secured notes. The revolver, which has a $1 billion accordion option, builds upon two previous issuances in 2021 and 2022 by the company with Capital One.

“We have been laser-focused on building a best-in-class rental experience and bringing productivity-enhancing solutions — like asset management — to market,” Jabbok Schlacks, CEO and co-founder of EquipmentShare, said. “This news underscores the confidence both the bank group and capital markets have in our company and our business model.”

In August 2021, Capital One served as the lead arranger and administrative agent for EquipmentShare’s original line of credit of $1.2 billion. In July 2022, the line of credit was increased to $2.1 billion.

“Capital One is pleased to continue our support for EquipmentShare, a business that has proven itself as a leader in the construction industry no matter what the external environment has been,” Tim Tobin, head of asset-based lending at Capital One, said. “It was the company’s strong foundation and strategic growth over the last few years that paved the way for positive receptivity for this transaction. Our deeply specialized team drew on its industry expertise to drive market enthusiasm, partnering closely with EquipmentShare as the company worked to secure Series E funding, a critical funding milestone. We were honored to partner with EquipmentShare once again and look forward to watching what the future holds for the company.”

“This increase in our ABL led by Capital One, along with our recent inaugural bond issuance, creates meaningful access to capital and new debt investors,” Trevor Schauenberg, CFO of EquipmentShare, said. “Expanding this efficient borrowing facility allows EquipmentShare to continue to grow into new U.S. markets and distribute our unique solutions to our customers in the construction industry.”

Goldman Sachs acted as the lead book running manager for the private notes offering, while Wells Fargo Securities, Capital One Securities, Citigroup, Fifth Third Securities, J.P. Morgan, Mizuho, MUFG, SMBC Nikko and Truist Securities acted as joint book-running managers and Regions Securities and UBS Investment Bank acted as co-managers.

Last month, EquipmentShare announced the completion of a $290 million funding round led by funds affiliated with BDT Capital Partners. The Series E round also included participation from existing investors, such as RedBird Capital Partners, Tru Arrow Partners and Sound Ventures, as well as several new investors, including Brown Advisors.

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