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H&E Equipment amends loan, switching revolver pricing to leverage-based grid
By Sara Rosenberg
New York, March 21 - H&E Equipment Services Inc. amended its credit facility, changing revolver pricing to a leverage-based grid (see table), with the initial interest rate on the revolver set at Libor plus 150 basis points, according to an 8-K filed with the Securities and Exchange Commission Tuesday.
The unused fee on the revolver will be based on excess availability, with the initial rate set at 37.5 bps.
In addition, all financial covenants were eliminated from the credit agreement, with the exception of a minimum fixed-charge coverage ratio requirement of 1.10 to 1.00 that was added to the deal, to be tested at the end of each fiscal month only if a covenant liquidity event has occurred.
Furthermore, under the amendment, the $16.5 million block on availability of assets was eliminated.
The amendment was completed on March 20.
General Electric Capital Corp. is the agent on the deal.
H&E Equipment is a Baton Rouge, La.-based equipment rental, service and sales company.
Table: Revolver Spread Grid
Leverage Ratio Libor Spread
< 1.50 to 1.00 1.25%
< 2.50 to 1.00 but > 1.50 to 1.00 1.50%
< 3.50 to 1.00 but > 2.50 to 1.00 1.75%
> 3.50 to 1.00 2.00%
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