H&E Equipment gets proposal for $250 million revolver

By Sara Rosenberg

New York, April 11 - H&E Equipment Services LLC received a proposal for a new $250 million five-year senior revolving credit facility and is therefore seeking an amendment to its 11 1/8% and 12½% notes indentures to increase allowed borrowings under its revolver to $275 million from $150 million, according to a company news release.

The company is also seeking consents to the 11 1/8% notes indenture that provides for a corresponding increase in the amount of any debtor-in-possession financing that it could incur in a bankruptcy proceeding.

"We want to enhance our current liquidity to match our growth expectations and related working capital requirements. To that end, we want to increase the maximum amount that the indentures allow us to incur under our senior revolving credit facility from $150 million to $275 million," president John Engquist said in the release.

Recently, H&E amended its existing senior revolving credit facility, extending the deadline to deliver audited financial statements for fiscal year 2004 and accompanying reports to Sept. 30.

Lenders also waived any cross default or event of default under the 11 1/8% senior secured notes due 2002 and the 12½% senior subordinated notes due 2013 resulting from non-compliance with the reporting deadline.

Now, with the start of this consent solicitation, the company is also looking for the same type of amendments and waivers from bondholders regarding the filing delay.

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

© 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.