Summary
United Rentals, Inc. (URI) filed an 8-K on September 24, 2012, to report significant amendments to its accounts receivable securitization facility. The company, along with its subsidiary United Rentals Receivables LLC II (SPV) and United Rentals (North America), Inc. (URNA), entered into Third Amended and Restated Purchase and Contribution and Receivables Purchase Agreements. These amendments update a facility initially established in 2005 and previously amended several times. The key changes include an increase in the facility's size from $300 million to $475 million, extending its potential borrowing capacity. The facility's maturity date has been set to September 23, 2013, with the possibility of 364-day extensions by mutual agreement. Notably, Credit Agricole and Atlantic withdrew from their roles as purchasers and administrative agents, with their rights and obligations being transferred to BTMU and Gotham, and Credit Agricole's administrative agent role being assigned to Scotia. These updates are crucial for investors to understand the company's financing structure and liquidity management.
Key Highlights
- 1United Rentals amended and restated its accounts receivable securitization facility, increasing its size from $300 million to $475 million.
- 2The amended facility has an expiration date of September 23, 2013, with provisions for 364-day extensions.
- 3The amendments involve Third Amended and Restated Purchase and Contribution and Receivables Purchase Agreements.
- 4Credit Agricole and Atlantic are no longer participants in the facility, with their roles transferred to BTMU and Gotham respectively.
- 5Scotia now holds the administrative agent role previously held by Credit Agricole.
- 6Advances under the facility will continue to be treated as debt on the balance sheet.
- 7The facility is subject to standard termination events, including change of control and covenant breaches.