United Rentals this week entered into an amended and restated credit agreement that provides for a senior secured asset-based loan facility of $1.8 billion, a portion of which is available for borrowing in Canadian Dollars. The agreement also provides for an uncommitted incremental increase in the ABL facility of up to $500 million. The ABL facility replaces the company’s existing senior secured asset-based loan facility.
“This new larger five year facility provides our company with increased financial flexibility to respond to market opportunities, and does so at attractive rates," said William Plummer, chief financial officer. “The ABL facility will help support our strategy of profitable growth and investment in people, fleet and technology.”
Certain of the company’s subsidiaries have provided guarantees under the ABL facility, which matures on Oct. 13, 2016. At closing, approximately $800 million was drawn and the borrowers had approximately $1 billion available for additional borrowings, subject to borrowing base limitations.
Greenwich, Conn.-based United Rentals is No. 1 on the RER 100.