Bank of Kentucky Finances IDSA Revolver
IDSA executed a new $1 million revolving credit line for its WESSCO operating subsidiary.
The Bank of Kentucky, which funded the initial line of credit of WESSCO in October 2013, agreed to fund the revolver to provide additional support for WESSCO’s growth strategy. WESSCO may draw up to $1 million over a 12-month period to fund purchases of new waste handling equipment.
The $1 million revolving credit line has a six-year term and bears interest at an annual rate of LIBOR plus 3.50%. At the end of the first year, the revolver will expire and WESSCO will begin to repay the outstanding loan balance in 60 equal monthly payments. WESSCO may prepay the loan at any time, in whole or in part, without penalty. The loan carries a fixed charge coverage ratio of 1.151.00 which will be measured annually. Fixed Charge Coverage Ratio will be calculated as the sum of WESSCO’s earnings before interest, taxes, depreciation, rent, and interest expense, less distributions and unfunded capital expenditures, divided by the sum of the current portion of long term debt due for the period, interest expense and rent expense. The new revolving credit facility replaces the initial revolving line of credit that expired in October 2014, converting into a five-year term obligation in the amount of $596,627.
“With the tremendous growth opportunity we see in the equipment rental business, we are thankful to have a supportive partner like The Bank of Kentucky,” said Sean Garber, president of ISA. “As a result of Bank of Kentucky’s confidence in WESSCO, we can continue to grow this business aggressively, and we have every intention of putting the full $1 million to use.”
WESSCO (Waste Equipment Sales and Services Company) owns and operates a fleet of compactors, balers and other waste handling equipment, and leases this equipment under long-term agreements to commercial and industrial customers.
Louisville, KY-headquartered IDSA is a publicly traded company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities.