H&E Equipment extends senior secured credit facility, lowers interest

By Marisa Wong

Madison, Wis., March 1 - H&E Equipment Services, Inc. amended its existing $320 million senior secured credit facility on Feb. 29, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The amendment permits the company to refinance its 8 3/8% senior unsecured notes due 2016 in an amount not less than $200 million and not greater than the outstanding principal amount of the notes at the time of refinancing and with no amortization or final maturity prior to the date six months after the credit facility expires.

The maturity date of the credit facility was extended to the earlier of Feb. 29, 2017 and, unless previously refinanced, the date that is six months prior to the maturity date of the senior unsecured notes. The facility was originally set to mature on July 29, 2015.

In addition, H&E lowered the interest rate to Libor plus 200 basis points to 250 bps, depending on the leverage ratio. The company also lowered the letter-of-credit fee to 200 bps to 250 bps, again depending on the leverage ratio.

The amendment further provides that the unused commitment fee margin will be either 50 bps or 37.5 bps, depending on the ratio of the average of the daily closing balances of the revolving loans, swing line loans and letters of credit outstanding during each month to the total commitments for the revolving loans, swing line loans and letters of credit.

The amended facility continues to provide a $320 million asset-based revolver, which includes a $30 million letter-of-credit facility and a $130 million incremental facility.

General Electric Capital Corp. is the administrative agent. Bank of America, NA is co-syndication agent and documentation agent, and Wells Fargo Capital Finance, LLC is co-syndication agent.

H&E is a Baton Rouge, La.-based heavy equipment manufacturing and services company.

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