Williams Scotsman completes $650 million credit facility

New York, July 1 - Williams Scotsman International, Inc. completed an amended and restated $650 million five-year credit facility via its Williams Scotsman, Inc. subsidiary.

The loan is made up of a $500 million revolving credit facility with an $80 million sub-limit for letters of credit and a $150 million term loan.

Interest is at Libor plus 250 basis points. There is a 37.5 basis points unused fee if usage is less than 50% and 25 basis points if usage is 50% or more.

At closing on June 28, the company had $208 million drawn on the revolver.

Bank of America, NA is administrative agent, Banc of America Securities LLC and Deutsche Banc Securities Inc. are co-lead arrangers and joint bookrunners, Deutsche Bank Trust Co. Americas is the syndication agent and Bank of America, NA is the co-collateral agent.

In addition to letters of credit, the revolver can be used for general corporate purposes. Subject to conditions, it can also be used to refinance the company's 9 7/8% senior notes due 2007 and 10% senior secured notes due 2008, according to an 8-K filing with the Securities and Exchange Commission.

Under the terms of the new facility, Williams Scotsman has to meet financial covenants if it does not meet excess availability requirements. As of June 30, the company met the excess availability test.

The covenants limit senior secured leverage to 3.75:1 up to Dec. 31, 2006 and 3.5:1 after that and require minimum consolidated interest coverage of 1.70:1 up to Dec. 31, 2007 and 1.90:1 after that. If the company completes its planned initial public offering of common stock, the ratio steps up to 2:1 after a 12-month delay.

Williams Scotsman is a Baltimore, Md., supplier of temporary offices and storage space.

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