Texada Software’s wholly owned U.S. equipment rental subsidiary Noble Rents, formerly known as Rolls High Reach, has had a term sheet approved by a U.S. lender’s credit committee to recapitalize its existing debt. The financing is expected to close May 31.
Noble Rents operates from four locations in Southern California, with headquarters in Ventura, Calif. The financing moves acquisition and growth-related rental fleet financing from existing term-loan arrangements with interest rates ranging from 5.8 percent to 7 percent, to one four-year $25 million revolving line of credit at a lower, variable rate.
“At a minimum, this new financing arrangement will net significant annual positive cash flow at current interest rates, based upon our existing debt outstanding,” said Texada CEO Willie Swisher. “Having this flexible financing structure in place offers Noble Rents growth ability through its borrowing base, allowing us to strategically add fleet as needed, while knowing we have a strong U.S.-based banking relationship in place that supports our vision, organization and team.”
Texada Software is based in Guelph, Ontario, Canada.