Summary
United Rentals, Inc. (URI) filed an 8-K on September 29, 2017, to announce an increase in its senior secured asset-based loan facility (ABL Facility). Through a Lender Joinder Agreement, the company secured an additional $500 million in revolving credit commitments, bringing the total ABL Facility to $3,000 million, subject to borrowing base availability. This strategic move enhances the company's financial flexibility and capacity for operational needs or potential growth initiatives. The increased credit facility maintains the same terms and conditions as the existing commitments and matures on June 8, 2021. This filing primarily concerns a material definitive agreement and the creation of a direct financial obligation.
Key Highlights
- 1United Rentals increased its senior secured asset-based loan facility (ABL Facility) by $500 million.
- 2The total ABL Facility capacity now stands at $3,000 million, subject to borrowing base availability.
- 3The increase was achieved through a Lender Joinder Agreement with Bank of America, N.A., as agent, and other lenders.
- 4The new commitments are under the Second Amended and Restated Credit Agreement, originally dated March 31, 2015.
- 5The ABL Facility maintains the same terms and conditions as existing commitments.
- 6The ABL Facility matures on June 8, 2021.
- 7This action enhances the company's financial flexibility and access to capital.