Summary
United Rentals, Inc. (URI) filed an 8-K report on June 29, 2018, detailing material amendments to its existing securitization facilities. The primary focus is on the "Amendment No. 8 to Third Amended and Restated Receivables Purchase Agreement" and "Amendment No. 5 to Third Amended and Restated Purchase and Contribution Agreement." These amendments extend the facility's expiration date to June 29, 2019, with potential for further 364-day extensions. Importantly, the total commitments and purchase limit have been increased from $775 million to $875 million, providing the company with enhanced liquidity and financial flexibility. Investors should note that the addition of equipment sale receivables to the eligible pool reflects a strategic adjustment following the company's suspension of its like-kind exchange program for rental equipment. While these advances are reflected as debt and receivables, the structure ensures that the receivables in the collateral pool serve as the sole source of repayment for lenders. The filing also reiterates standard termination events and the company's ongoing performance undertaking.
Key Highlights
- 1Extension of securitization facility expiration date to June 29, 2019, with potential for further 364-day extensions.
- 2Increase in the facility's Purchase Limit and aggregate commitments from $775,000,000 to $875,000,000.
- 3Addition of equipment sale receivables to the pool of eligible receivables, reflecting a change in the company's equipment disposition strategy.
- 4The amendments pertain to the Receivables Purchase Agreement and the Purchase and Contribution Agreement, involving multiple financial institutions.
- 5Advances under the amended facility will continue to be reflected as debt on the balance sheet.
- 6The structure maintains that receivables in the collateral pool are the lenders' only source of repayment.
- 7Confirmation of the company's long-standing performance undertaking related to the securitization facility.