Essex Rental subsidiaries get restated $75 million revolver due 2014

By Angela McDaniels

Tacoma, Wash., Nov. 17 - Essex Rental Corp. subsidiaries Coast Crane Co. and Coast Crane Ltd. entered into an amended and restated $75 million revolving credit facility due Nov. 24, 2014 on Monday, according to an 8-K filing with the Securities and Exchange Commission.

CC Acquisition Holding Corp. is the guarantor.

Essex said the purpose of the revolver is to allow Coast Crane to more freely transport rental equipment assets between the United States and Canada in an effort to target markets with the greatest demand for the rental assets without having to recognize a reduction in collateral value under the credit agreement.

The facility has a $2 million sublimit for letters of credit and a $10 million subfacility for revolving loans to Coast Crane Ltd.

The interest rate is Libor plus 375 basis points with a 1.5% Libor floor. The letter-of-credit fee is 375 bps, and the commitment fee is 50 bps.

General Electric Capital Corp. is the administrative agent.

At closing, Coast Crane Ltd. used borrowings under the facility to repay its existing credit facility, which was terminated. Future borrowings can be used for general corporate purposes, capital expenditures and working capital.

If the companies fail to maintain a minimum availability under the facility of $8 million or more, they will have to meet a fixed charge coverage ratio test.

Essex is a Buffalo Grove, Ill., provider of lattice-boom crawler crane and attachment rental services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.