Herc Holdings Inc., Herc Rentals Inc and Bank of America, N.A Enters into Amendment to the Senior Secured Asset-Based Revolving Credit Facility
July 09, 2022 at 02:00 am IST
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On July 5, 2022, Herc Holdings Inc., Herc Rentals Inc., Matthews Equipment Limited and certain other subsidiaries of the Company and Bank of America, N.A. entered into an amendment to the Company's senior secured asset-based revolving credit facility dated (the ABL Credit Facility). The First Amendment was executed primarily to increase the aggregate amount of the revolving credit commitments to $3.5 billion and to extend the maturity date of the ABL Credit Facility to July 5, 2027. In addition: The provisions of the ABL Credit Facility regarding interest on revolving loans were amended to replace LIBOR-based rates with rates based on Term SOFR with regard to loans denominated in U.S. dollars and to make certain associated changes; and certain of the operational and restrictive covenants and other terms and conditions of the ABL Facility were modified to provide the Company and its subsidiaries increased flexibility and permissions thereunder.
A new section was added to the ABL Credit Facility to provide that the Company, in consultation with a Sustainability Coordinator, may establish key performance indicators (KPIs) with respect to certain environmental, social and governance targets of the Company and its subsidiaries, which if mutually agreed, may be incorporated into the ABL Credit Facility through an amendment (an ESG Amendment). Upon the effectiveness of an ESG Amendment, the commitment fee and the spreads applicable to revolving loans may be increased or decreased within certain limits based on performance against the KPIs.
Herc Holdings Inc. is an equipment rental supplier. The Company offers a portfolio of equipment for rent. In addition to its principal business of equipment rental, the Company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offers equipment re-rental services and provides on-site support to its customers, and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. Its fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. Its ProContractor business focuses on professional-grade tools and equipment, and offers industry-specific solutions-based services, which include power generation, climate control, remediation and restoration, pumps, trench shoring, studio and production equipment.