Summary
United Rentals, Inc. (URI) announced on June 24, 2022, significant amendments to its existing receivables purchase and contribution agreements. These amendments primarily extend the expiration date of the Amended A/R Facility to June 24, 2024, with potential for further 364-day extensions. Additionally, the facility's aggregate commitment was increased from $900 million to $1.1 billion, enhancing the company's borrowing capacity. The amendments also introduce GTA Funding LLC as a new Purchaser and The Toronto-Dominion Bank as its Purchaser Agent. A notable change is the transition of the benchmark interest rate from LIBOR to Term SOFR for one-month interest periods, plus a 10 basis point credit spread adjustment. This move reflects broader market shifts away from LIBOR and aims to provide a more stable and forward-looking interest rate benchmark for the facility.
Key Highlights
- 1Extended the expiration date of the Amended A/R Facility to June 24, 2024, with potential for further 364-day extensions.
- 2Increased the aggregate commitments of the Banks under the Amended A/R Facility from $900,000,000 to $1,100,000,000.
- 3Added GTA Funding LLC as a new Purchaser and The Toronto-Dominion Bank as its Purchaser Agent.
- 4Transitioned the benchmark interest rate from LIBOR to Term SOFR for one-month interest periods, plus a 10 basis point credit spread adjustment.
- 5Entered into an uncommitted repurchase facility allowing for short-term financing of up to $100,000,000, secured by a subordinated note.
- 6The Company reaffirmed its performance undertaking related to the securitization facility.