Rush Enterprises entered into a $100 million revolving credit agreement with a group of banks led by BMO Harris serving as administrative agent, letter of credit issuer and swing line lender. Other lenders included Bank of America, Wells Fargo, Frost Bank, MassMutual Asset Finance and NYCB Specialty Finance.
According to the terms of the credit agreement, the lenders have agreed to make up to $100 million of revolving credit loans to the company for working capital, capital expenditures and other general corporate purposes. The amount of borrowings under the credit agreement are subject to borrowing base limitations based on the value of the company’s eligible parts inventory and eligible company vehicles. The credit agreement includes a $20 million letter of credit sublimit.
The foregoing collateral also secures the company’s obligations under its third amended and restated credit agreement dated July 7, 2016, by and among certain subsidiaries of Rush, as borrowers, Rush, as the borrower representative and guarantor, the lenders from time to time parties thereto and BMO Harris Bank, as administrative agent and collateral agent. The agent and the floor plan agent have entered into an inter-creditor agreement dated March 21, 2017, setting forth their agreement as to certain of their respective rights and obligations with respect to the assets and properties of the company and their understanding relative to their respective positions as secured creditors in certain assets and properties of the company.
The credit agreement expires on the earlier of either March 21, 2020 or the date on which all commitments under the floor plan credit agreement shall have terminated, whether as a result of the occurrence of the commitment termination date or otherwise.