General Finance Corporation Announces Redemption of Remaining 8.125% Senior Notes Due 2021

Rhea-AI Summary

General Finance Corporation (NASDAQ:GFN) announced the redemption of its remaining outstanding 8.125% Senior Notes due July 2021, totaling $11.6 million. The redemption will occur on January 15, 2021, at a price of $25 per Note, plus any accrued interest. Funding for this redemption will come from borrowings under its North American senior credit facility, which has been amended to extend its maturity until July 31, 2025. This strategic move indicates the company's commitment to managing its debt effectively.

Positive

• Redemption of $11.6 million in Senior Notes improves financial position.
• Amended credit facility extends maturity to July 31, 2025, enhancing liquidity.

Negative

• None.

PASADENA, Calif., Dec. 16, 2020 (GLOBE NEWSWIRE) -- General Finance Corporation (NASDAQ:GFN), a leading specialty rental services company offering portable storage, modular space and liquid containment solutions (the “Company”), announced today that it will redeem its remaining outstanding 8.125% Senior Notes due July 2021 (NASDAQ:GFNSL) (the “Notes”). On January 15, 2021 (the “Redemption Date”) the Company will redeem the remaining $11.6 million of the issued and outstanding principal amount of the Notes in accordance with the optional redemption provisions in the indenture governing the Notes. The redemption price will be $25 per Note (equal to 100% of the Notes’ original principal amount), plus accrued and unpaid interest through, but excluding, the Redemption Date.

The Company will use borrowings from its North American senior credit facility to fund the redemption; which was amended to, among other things, allow the use of the borrowings for the redemption and extend the maturity of the facility to July 31, 2025, subject to extension up to December 14, 2025 as provided in the amendment.

This press release does not constitute a notice of redemption. Beneficial holders of the Notes with any questions should contact the brokerage firm or financial institution through which they hold the Notes.

The Notes selected for redemption should be presented and surrendered by mail to the office of the paying agent, Wells Fargo Bank, N.A., MAC N9300-070, 600 South Fourth Street, Minneapolis, MN 55402, Attention: Corporate Trust Operations, Phone Inquiries: (800) 344-5128.

About General Finance Corporation

Headquartered in Pasadena, California, General Finance Corporation (NASDAQ: GFN, www.generalfinance.com) is a leading specialty rental services company offering portable storage, modular space and liquid containment solutions. Management’s expertise in these sectors drives disciplined growth strategies, operational guidance, effective capital allocation and capital markets support for the Company’s subsidiaries. The Company’s Asia-Pacific leasing operations in Australia and New Zealand consist of wholly-owned Royal Wolf (www.royalwolf.com.au), the leading provider of portable storage solutions in those regions. The Company’s North America leasing operations consist of wholly-owned subsidiaries Pac-Van, Inc.(www.pacvan.com) and Lone Star Tank Rental Inc. (www.lonestartank.com), providers of portable storage, office and liquid storage tank containers, mobile offices and modular buildings. The Company also owns Southern Frac, LLC (www.southernfrac.com), a manufacturer of portable liquid storage tank containers and, under the trade name Southern Fabrication Specialties (www.southernfabricationspecialties.com), other steel-related products in North America.

Investor Contact
Larry Clark
Financial Profiles, Inc.
lclark@finprofiles.com
310-622-8223

FAQ

What is the significance of General Finance Corporation redeeming its Senior Notes?

The redemption of the Senior Notes signifies General Finance Corporation's effort to reduce debt, with $11.6 million being redeemed on January 15, 2021.

How is General Finance Corporation funding the redemption of its Senior Notes?

The company will use borrowings from its North American senior credit facility to fund the redemption.

When will the remaining Senior Notes be redeemed?

The remaining Senior Notes will be redeemed on January 15, 2021.

What is the redemption price for the Senior Notes?

The redemption price for the Senior Notes is $25 per Note, plus accrued interest.

What changes were made to General Finance Corporation's credit facility?

The credit facility was amended to allow borrowings for the redemption and to extend its maturity to July 31, 2025.