GE Capital Agents Essex Rental Revolver Amendment
Essex Rental announced that it entered into an amendment to its Coast Crane credit agreement. The modification to the credit agreement provides Essex with greater flexibility to capitalize on opportunities to increase revenues associated with the sale of new equipment. The modification also amends language in the existing credit agreement related to the application of asset sale proceeds from new and used equipment sales.
According to the company’s 8-K filing, GE Capital served as agent on the facility amendment, with PNC Bank, Wells Fargo Bank and Capital One Leverage Finance as lenders.
Kory Glen, chief financial officer stated, “The amendment to the revolving credit facility will allow us to take advantage of opportunities to grow our new equipment distribution business. In our experience, new equipment sales are enhanced if we are able to carry new equipment for resale in inventory. Prior to amending our loan agreement, we were limited in the amount of new equipment for resale that we could purchase, because such purchases were deemed capital expenditures, and therefore, were included in the calculation of our fixed charges. As a result of the loan amendment, these purchases are now deemed inventory and are not included in our fixed charge ratio. The loan modification will provide us with greater flexibility to capitalize on opportunities within this segment of our business.”
Essex, through its subsidiaries, is provider of rental and distribution for mobile cranes (including lattice-boom crawler cranes, truck cranes and rough terrain cranes), self-erecting cranes, stationary tower cranes, elevators and hoists, and other lifting equipment used in a wide array of construction projects.