General Finance subsidiaries get $200 million restated revolver

By Angela McDaniels

Tacoma, Wash., April 8 - General Finance Corp. subsidiaries Pac-Van, Inc. and Lone Star Tank Rental Inc. amended and restated their $200 million senior secured revolving credit facility on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The maturity date is now Sept. 7, 2017.

The revolver has a $20 million accordion feature and a $5 million sublimit for standby letters of credit.

The interest rate is Libor plus 250 basis points to 300 bps.

Wells Fargo Bank, NA and HSBC Bank USA, NA are the lead arrangers. Wells Fargo is the bookrunner and administrative agent. HSBC is the syndication agent. Other lenders include Private Bank and Trust Co., Capital One Business Credit Corp. and One West Bank.

The amount the companies may borrow is subject to the terms of a borrowing base calculated at a discount to some collateral pledged by the companies.

The revolver contains financial covenants that include fixed charge coverage ratios and utilization ratios.

Borrowings under the new revolver were used by Lone Star to acquire substantially all the assets of KHM Rentals, LLC and Lone Star Tank Rental, LP for about $95 million.

Based in Pasadena, Calif., General Finance is the parent company of businesses in the mobile storage, modular space and liquid containment industries.

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