H&E Equipment amends, extends $402.5 million senior secured facility

By Susanna Moon

Chicago, May 23 - H&E Equipment Services, Inc. amended its $402.5 million senior secured credit facility on May 21 with Deutsche Bank Securities Inc. as joint lead arranger and joint bookrunner, according to an 8-K filed with the Securities and Exchange Commission.

The company lifted the uncommitted incremental revolving capacity by $20 million to $150 million and extended the maturity date of the credit facility to May 21, 2019 from Feb. 29, 2017.

The revolver size was increased from $130 million.

Pricing was reduced to Libor plus 175 basis points to 225 bps, depending on leverage.

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

The amendment also permits a like-kind exchange program, provides that the unused commitment fee margin will be either 50 bps, 37.5 bps or 25 bps, depending on the ratio of the average of the daily closing balances of the aggregate revolving loans, swing line loans and letters of credit outstanding.

The agreement permits for the payment of dividends and/or stock repurchases or redemptions on the capital stock of the company of up to $75 million per calendar year and also permits the payment of the special cash dividend of $7.00 per share previously declared by the company on Aug. 20, 2012.

The amended agreement continues to provide a $402.5 million senior secured asset-based revolver, including a $30 million letter-of-credit sub-facility, and a guaranty by the company and each of its subsidiaries of the obligations under the credit facility.

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

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