Herc refinances with new $1.75 billion ABL revolver due 2024

By Sarah Lizee

Olympia, Wash., July 31 – Herc Holdings Inc. refinanced its existing asset-based credit facility on Tuesday with a new $1.75 billion senior secured ABL revolving credit facility due July 31, 2024, according to an 8-K filing with the Securities and Exchange Commission.

Herc and its subsidiaries, including Herc Rentals Inc. and Matthews Equipment Ltd., entered into the new credit agreement with Bank of America, NA as agent. Herc Holdings and Herc Rentals are the initial U.S. borrowers and Matthews Equipment is the Canadian borrower.

Interest is Libor or CDOR plus 150 basis points initially. The margin will be adjusted based on the quarterly average excess availability under the facility.

Up to $250 million of the revolver is available for letters of credit.

The facility allows for incremental revolving commitments and/or term loans under some conditions.

There are a number of financial covenants, including one that, upon excess availability falling below certain levels, requires the borrowers to comply with a minimum fixed charge coverage ratio of no less than 1 to 1.

Bank of America, JPMorgan Chase Bank NA, Capital One, NA, Wells Fargo Bank, NA, Bank of Montreal, Credit Agricole CIB, Goldman Sachs Bank USA, ING Capital LLC, MUFG Union Bank, NA and TD Bank, NA are co-syndication agents.

Herc borrowed $722 million under the new ABL revolver and repaid all amounts outstanding under the prior ABL facility.

The equipment rental company is based in Bonita Springs, Fla.

© 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.