McGrath RentCorp Announces Completion of $650 Million Financing

Rhea-AI Summary

McGrath RentCorp (NASDAQ: MGRC) has secured a $650 million credit facility from a syndicate of banks, maturing on July 15, 2027. This new facility replaces the previous $420 million line of credit. The funds will be allocated for working capital, capital expenditures, and other general corporate purposes. The facility was arranged by BofA Securities, Inc., with Bank of America as the administrative agent. This strategic move is expected to bolster McGrath's operational capabilities and financial stability.

Positive

• Secured a new $650 million credit facility, enhancing liquidity.
• Replaces an existing $420 million line of credit, allowing for better financial management.
• Funds will support working capital and capital expenditures.

Negative

• None.

LIVERMORE, Calif.--(BUSINESS WIRE)-- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced that it has completed a $650 million credit facility with a syndicate of banks. The five year facility matures on July 15, 2027 and replaces the Company’s existing $420 million line of credit. BofA Securities, Inc. served as Joint Lead Arranger and Sole Bookrunner. Bank of America, N.A. served as Administrative Agent. U.S. Bank National Association, MUFG Union Bank N.A. and Wells Fargo Bank, N.A. served as Joint Lead Arrangers and Co-Syndication Agents.

The proceeds of the facility will be used for working capital, capital expenditures and other general corporate purposes. Additional information regarding the new credit facility is available in the Company’s current report on Form 8-K, filed with the SEC on July 19, 2022.

ABOUT MCGRATH RENTCORP:

Founded in 1979, McGrath RentCorp (Nasdaq: MGRC) is a diversified business-to-business rental company providing modular buildings, electronic test equipment, portable storage and tank containment solutions across the United States and other select North American regions. The Company’s rental operations consist of four divisions: Mobile Modular rents and sells modular buildings to fulfill customers’ temporary and permanent classroom and office space needs; TRS-RenTelco rents and sells electronic test equipment; Adler Tank Rentals rents and sells containment solutions for hazardous and nonhazardous liquids and solids; and Mobile Modular Portable Storage provides portable storage rental solutions. For more information on McGrath RentCorp and its operating units, please visit our websites:

Corporate – www.mgrc.com
Tanks and Boxes – www.adlertankrentals.com
Modular Buildings – www.mobilemodular.com
Portable Storage – www.mobilemodularcontainers.com
Electronic Test Equipment – www.trs-rentelco.com
School Facilities Manufacturing – www.enviroplex.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220719006096/en/

Keith E. Pratt

EVP & Chief Financial Officer

925-606-9200

Source: McGrath RentCorp

FAQ

What is the recent credit facility amount for McGrath RentCorp (MGRC)?

McGrath RentCorp has secured a new credit facility amounting to $650 million.

When does McGrath RentCorp's new credit facility mature?

The new credit facility for McGrath RentCorp matures on July 15, 2027.

What will the proceeds of McGrath RentCorp's credit facility be used for?

The proceeds will be used for working capital, capital expenditures, and other general corporate purposes.

Who arranged McGrath RentCorp's new credit facility?

The new credit facility was arranged by BofA Securities, Inc.

How does the new credit facility impact McGrath RentCorp's financial position?

The new $650 million credit facility enhances McGrath RentCorp's liquidity and financial stability.