01—Abstract
Summary
Summary of the 8-K filed September 19, 2014. Cited figures are marked; the original filing is the authoritative source.
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 Notably, Bank of America, National Association has withdrawn from the facility, with its rights and obligations being assigned to SunTrust Bank.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.
02—Key points
Key Highlights
- Amendment No. 3 to the Third Amended and Restated Receivables Purchase Agreement became effective on September 18, 2014.
- The expiration date of the Accounts Receivable Facility has been extended to September 17, 2015, with potential for further 364-day extensions.
- The amendment includes updated covenants regarding compliance with laws (including sanctions) and additional tax provisions.
- Bank of America, National Association has withdrawn from the facility, assigning its interests to SunTrust Bank.
- The facility continues to be structured as a securitization where receivables are the sole source of repayment for advances.
- Advances under the facility are reflected as debt on the company's consolidated balance sheets.
- United Rentals confirmed its performance undertaking originally established in May 2005.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to report an amendment to United Rentals' Accounts Receivable Facility, specifically Amendment No. 3 to the Third Amended and Restated Receivables Purchase Agreement.
What is the impact of the amendment on the facility's term?
The amendment extends the expiration date of the Accounts Receivable Facility to September 17, 2015, and allows for further extensions on a 364-day basis by mutual agreement, providing continued financing flexibility.
Are there any changes to the parties involved in the facility?
Yes, Bank of America, National Association has withdrawn from the facility, and its rights and obligations have been assigned to SunTrust Bank. Other participants remain involved.
How does this facility affect United Rentals' balance sheet?
Advances made under this amended facility will continue to be reported as debt on United Rentals' condensed consolidated balance sheets, while the receivables in the collateral pool will be shown as assets.
04—Continue