Ahern Rentals has reached an agreement with lenders to amend its credit facility, providing it up to $350 million in revolving loans. The credit facility, which matures Aug. 21, 2011, adds a $95 million term loan facility to its existing revolving facility. Taking into account a $40 million availability block, Ahern Rentals can borrow up to an aggregate of $310 million.

Advances under the revolver are limited based on reserves required by the revolving lenders and a percentage of qualified collateral.

New term loan notes in the aggregate principal amount of $95 million have been issued to Liberty Harbor Master Fund and certain affiliates. Of the $95 million aggregate principal amount of new notes evidencing the term loan, $55 million was issued for $55 million of cash and $40 million was issued in exchange for $53.3 million aggregate principal amount of the company’s 9 ¼ percent second priority senior secured notes due 2013.

The net proceeds of about $47 million of the term loan were used to repay outstanding loans under the revolving line of credit under the credit facility.

“We are very appreciative of the support of our bank group, Liberty Harbor, and our existing bondholders in helping us achieve this important financing,” said CEO Don Ahern. “We will continue to execute on our business strategy so that Ahern Rentals can successfully navigate the severe industry downturn we are currently encountering and emerge on the other side with a stronger company and an improved geographic footprint that will allow us to resume our history of growth.”

Oppenheimer & Co. acted as exclusive financial advisor to Ahern Rentals on the transaction and also served as solicitation agent for the consent solicitation.

Ahern Rentals, based in Las Vegas, is No. 8 on the RER 100.