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UNITED RENTALS, INC. 8-K Report, Material Agreement (Apr 1, 2015)

Reports
Material Agreements·Financial Events·Exhibits & Filings
Filing Date
Filed April 1, 2015
Period End
March 31, 2015
Security
URI
In the record · 2016–202610-K1110-Q328-K170

URI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 170 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Oct ’17Oct ’17
  2. Leadership change8-K · May ’19May ’19
  3. Material agreement8-K · Aug ’21Aug ’21
  4. Material agreement8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 8-K filed April 1, 2015. Cited figures are marked; the original filing is the authoritative source.

United Rentals, Inc. (URI) announced on March 31, 2015, the entry into a Second Amended and Restated Credit Agreement, establishing a new senior secured asset-based loan (ABL) facility totaling $2.5 billiona.

This facility, which replaces a previous one, includes an option for an incremental increase of up to $1.25 billionb or 80% of the net orderly liquidation value of assets exceeding the initial borrowing base. The new ABL facility matures on March 31, 2020, and provides significant borrowing capacity with approximately $2.34 billion available at closing, after a $138 million CAD draw and accounting for outstanding letters of credit. The credit agreement involves various United Rentals entities as borrowers and guarantors, with Bank of America, N.A. and other financial institutions as lenders.

The obligations are secured by a first-priority lien on substantially all tangible and intangible assets of the U.S. borrowers, U.S. guarantors, and certain Canadian subsidiaries. Importantly, the facility does not include financial covenants, except for a springing fixed charge coverage ratio that is tested only when availability falls below 10%c of the maximum revolver amount, indicating flexibility for the company's operations.

02—Key points

Key Highlights

  1. United Rentals entered into a new Second Amended and Restated Credit Agreement on March 31, 2015.
  2. The agreement establishes a $2.5 billion senior secured asset-based loan (ABL) facility.
  3. There is an option for an incremental increase of up to $1.25 billion in the ABL facility.
  4. The ABL facility matures on March 31, 2020.
  5. Approximately $2.34 billion was available for additional borrowings at closing.
  6. The facility is secured by a first-priority lien on substantially all assets of U.S. borrowers, U.S. guarantors, and certain Canadian subsidiaries.
  7. The credit agreement does not contain ongoing financial covenants, only a springing fixed charge coverage ratio.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of this 8-K filing?

    This 8-K filing announces the entry into a material definitive agreement, specifically a Second Amended and Restated Credit Agreement, which establishes a new senior secured asset-based loan (ABL) facility for United Rentals, Inc. and its subsidiaries.

  2. What is the total size of the new credit facility and its maturity date?

    The new ABL facility has a maximum amount of $2.5 billion, with the potential for an additional increase. The facility matures on March 31, 2020.

  3. What are the key financial covenants associated with this new credit facility?

    A significant point for investors is that the ABL Facility does not include any ongoing financial covenants. A fixed charge coverage ratio covenant will only 'spring' into effect and be tested if the availability under the ABL Facility falls below 10% of the maximum revolver amount, indicating operational flexibility.

  4. How much was drawn and available at the time of closing?

    At closing, approximately CAD $138 million was drawn under the ABL Facility. This left approximately $2.341 billion available for additional borrowings, subject to borrowing base limitations and outstanding letters of credit.

04—Continue

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