VENTURA, Calif — Noble Rents, formerly known as Rolls High Reach, and a subsidiary of Texada Software, recently completed the recapitalization of its existing debt. Noble Rents, whose initial entry into the U.S. equipment rental business took place in August 2011 with the acquisition of Rolls High Reach, now operates from four locations in Southern California with 50 employees and more than 1,100 pieces of aerial, forklift and light compact equipment rental units.
The terms of the recapitalization move acquisition and growth-related rental fleet financing from existing term loan arrangements with interest rates ranging from 5.8 to 7.0 percent to one, comprehensive four-year revolving line of credit. Interest payments will be based on a variable interest rate calculated at the one month LIBOR rate plus 325 basis points, currently 3.50 percent. The new facility will operate with a daily cash sweep against outstanding debt with no scheduled principal payments during the term of the loan. Texada Software provided a guarantee of all amounts owing by Noble Rents under the facility. Noble Rents has no other debt facilities presently outstanding.
Under the terms of the financing, Noble Rents can borrow up to $25.0 million based upon its borrowing base, determined by the value of its rental fleet, accounts receivable and inventory.
Guelph, Ontario-based Texada Software, following the launch of its LiuGong dealership, operates in three complementary businesses, equipment rental, equipment dealership and enterprise asset management software. The company, through its wholly owned U.S. subsidiaries, is expanding its presence in the construction and industrial equipment industry and conducts business as Noble Rents in Southern California and Noble Equipment in Houston. Noble Equipment is the exclusive distributor of LiuGong Construction Machinery equipment in Southeast Texas.
