Neff Reduces Debt

Neff Corp. last week announced the repurchase of its senior subordinated notes, which were repurchased during the second quarter for $47.7 million, in an aggregate principal amount of $81.1 million. The company recognized a gain on debt extinguishments of $35.0, which will be reflected in its financial statements for the quarter ending today. Prior to the repurchase, Neff amended the terms of its senior revolving credit facility to permit the repurchase. The amendment to the company’s senior revolving credit facility modified certain financial covenants in the credit facility and permanently waived all existing defaults. “This transaction has provided us the opportunity to make a substantial reduction to our total debt and our debt servicing costs,” said CEO Juan Carlos Mas. “Taking into consideration the free cash flow from operations and our repurchase of these notes at a substantial discount, we have been able to reduce our outstanding debt by $41.2 million and will reduce our cash interest payments by over $8.3 million per annum. During the remained of 2003, we will continue to generate free cash flow and remain focused on reducing our outstanding debt. We continue to explore all opportunities for expense reduction and will remain disciplined in regards to our capital expenditures.” Miami-based Neff Rentals is No. 10 on the RER 100 with 72 locations in 16 states.