H&E Equipment amends loan to lower interest rates

By Sara Rosenberg

New York, March 14 - H&E Equipment Services LLC amended its senior secured credit facility, lowering interest rates, reducing the block on availability of assets to $15 million from $30 million and increasing the advance rate on the orderly liquidation value of rental assets to 80% from 75%, according to an 8-K filed with the Securities and Exchange Commission.

Interest is based on average excess availability. If excess availability is equal to or more than $40 million, the interest rate is Libor plus 225 basis points. If availability is less than $40 million and equal to or more than $25 million, the interest rate is Libor plus 250 basis points. If availability is less than $25 million, the interest rate is Libor plus 275 basis points.

General Electric Capital Corp. is the agent on the deal. The amendment became effective Friday.

"This amendment to the senior secured credit facility significantly improves the company's overall liquidity, reduces interest costs and provides operating flexibility," acting chief financial officer Leslie Magee said in a company news release.

H&E Equipment is a Baton Rouge, La.-based equipment rental, service and sales company.

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