Essex Rental Modifies Coast Crane Credit Facility With GE Capital, Others
Essex Rental Corp. announced that it inked an amendment to its Coast Crane credit agreement. The modification on the credit agreement provides Essex with greater flexibility to capitalize on the opportunity to increase revenues of this particular sale of the latest equipment. The modification also amends language within the existing credit agreement in connection with the use of asset sale proceeds from used and new equipment sales.
Glen continued, “Additionally, we clarified language inside our loan agreement to ensure that we aren’t instructed to utilize proceeds from the sale of the latest or used equipment to permanently reduce debt.”
Essex, through its subsidiaries, is one of North America’s largest providers of rental and distribution for mobile cranes (including lattice-boom crawler cranes, truck cranes and rough terrain cranes), self-erecting cranes, stationary tower crane, elevators and hoists, along with other lifting equipment employed in lots of different construction projects. Also, the corporation provides product support including installation, maintenance, repair, and parts and services for equipment provided as well as other equipment utilised by its construction industry customers.
To examine the SEC filing from Feb. 21, which names GE Capital as agent around the Coast Crane facility, click here.
Kory Glen, CFO stated, “The amendment towards revolving credit facility lets us to adopt benefit from the opportunity to grow our new equipment distribution business. Inside our experience, new equipment sales are enhanced if we are in a position to carry new equipment for resale in inventory. Just before amending our loan agreement, we had arrived limited inside level of new equipment for resale that we could purchase, because such purchases were deemed capital expenditures, and for that reason, were within the calculation individuals fixed charges. Because of the loan amendment, these purchases are now deemed inventory and so are not included in our fixed charge ratio. The borrowed funds modification will supply us with greater flexibility to capitalize on opportunities in this segment of our own business.”