Summary
United Rentals, Inc. (URI) filed an 8-K on June 25, 2021, to report a material amendment to its receivables purchase agreement. This amendment, specifically Amendment No. 13, extends the facility's expiration date to June 24, 2022, with provisions for further 364-day extensions upon mutual agreement. Importantly, the total commitment under this facility was increased from $800 million to $900 million, providing the company with enhanced borrowing capacity against its eligible receivables.
Key Highlights
- 1Extended the expiration date of the receivables purchase facility to June 24, 2022, with potential for further 364-day extensions.
- 2Increased the aggregate commitments of the banks under the facility from $800,000,000 to $900,000,000.
- 3The amendment was made to the Third Amended and Restated Receivables Purchase Agreement, involving URNA, the SPV, and various purchasers and banks.
- 4Advances under the amended facility will continue to be reflected as debt on the balance sheet.
- 5Eligible receivables in the collateral pool must exceed outstanding loans by a specified amount for advances to be permitted.
- 6The facility is structured such that receivables in the collateral pool are the lenders' only source of repayment.
- 7Standard termination events, including change of control and covenant breaches, remain in effect.