General Finance updates credit facility’s change-of-control covenant

By Marisa Wong

Madison, Wis., June 1 – General Finance Corp. subsidiaries Pac-Van, Inc., Lone Star Tank Rental Inc. and GFN Realty Co., LLC amended their amended and restated credit agreement dated April 7, 2014 to revise the change-of-control covenant, according to an 8-K filing with the Securities and Exchange Commission.

The covenant was amended so that any of the following events would constitute a change of control: the failure of General Finance to own 100% of the stock of GFN North America Corp.; the failure of GFN North America to own 100% of the stock or membership interests of GFN Realty, Lone Star or Pac-Van; the failure of GFN Realty, Lone Star or Pac-Van to own directly or indirectly 100% of each borrower or guarantor; the occurrence of a change of control under any indenture or agreement relating to General Finance’s debt in the aggregate principal amount of $3 million or more; the acquisition by a new stockholder or new stockholders acting as a group of 30% or more of the company’s common stock; or the election of a majority of new members of the board of directors within a 12-month period.

A change of control would trigger an obligation to repay all amounts borrowed under the credit agreement, the filing noted.

The amendment also allows amounts borrowed under the credit agreement to be used to, among other things, pay General Finance a management fee of $2 million to $4 million per fiscal year and to repay all amounts borrowed under the facility agreement with Credit Suisse AG, Singapore Branch dated March 31, 2014 in the original principal amount of $25 million, subject to some financial conditions.

Wells Fargo Bank, NA is the agent under the credit agreement.

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

© 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.