Capital One served as administrative agent for a $1.2 billion senior secured asset-based revolving line of credit for EquipmentShare, an equipment rental supplier for the construction industry. The revolver has an $800 million accordion option, and Capital One also arranged a $500 million private term loan as part of the deal.
“Our ability to take on a transaction of this size and complexity underscores the strength of our balance sheet and the expertise of the team we have assembled,” Bob McCarrick, executive vice president and head of middle-market relationships at Capital One, said.
“This is a key step in our evolution as we continue to grow,” Jabbok Schlacks, CEO and co-founder of EquipmentShare, said. “In conjunction with our recent $230 million investment round, it is helping us expand our suite of technology solutions and build out our national footprint to better serve the needs of our customers.”
In addition to offering equipment rentals and sales and providing services including maintenance and repair, EquipmentShare developed T3, a proprietary telematics-powered and cloud-based technology operating system for construction. It enables contractors to connect data and workflows to manage assets, materials and team members from a single platform. The company also plans to have more than 100 locations across the U.S. by the end of 2021.
“The company has demonstrated its ability to manage growth wisely while positioning itself to ride out the cycles that frequently occur in the industry,” Tim Tobin, head of asset-based lending at Capital One, said. “It was an excellent opportunity for us, and we are all excited by EquipmentShare’s growth and value-add proposition.”
“I was impressed with the Capital One team’s business acumen and the efforts they took to understand our business, speak with customers and analyze the competitive landscape,” Trevor Schauenberg, CFO of EquipmentShare, said. “Having them validate our vision with a facility of this size means a great deal to us.”