Summary
United Rentals, Inc. (URI) filed an 8-K on September 19, 2014, reporting an amendment to its Accounts Receivable Facility. The key development is the extension of the facility's expiration date to September 17, 2015, with provisions for further 364-day extensions, indicating continued access to this important financing source. The amendment also incorporates updated representations, warranties, covenants related to compliance with laws, and tax provisions. Notably, Bank of America, National Association has withdrawn from the facility, with its rights and obligations being assigned to SunTrust Bank. While this represents a change in participants, the overall structure of the facility, which relies on the receivables pool as the sole source of repayment, remains in place. Investors should note that advances under this facility continue to be reflected as debt on the balance sheet.
Key Highlights
- 1Amendment No. 3 to the Third Amended and Restated Receivables Purchase Agreement became effective on September 18, 2014.
- 2The expiration date of the Accounts Receivable Facility has been extended to September 17, 2015, with potential for further 364-day extensions.
- 3The amendment includes updated covenants regarding compliance with laws (including sanctions) and additional tax provisions.
- 4Bank of America, National Association has withdrawn from the facility, assigning its interests to SunTrust Bank.
- 5The facility continues to be structured as a securitization where receivables are the sole source of repayment for advances.
- 6Advances under the facility are reflected as debt on the company's consolidated balance sheets.
- 7United Rentals confirmed its performance undertaking originally established in May 2005.