H&E Equipment Services, Inc. (NASDAQ:HEES) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.
On December22, 2017, H&E Equipment Services, Inc. (the “Company”) amended, extended and restated its existing $602.5million senior secured credit facility with Wells Fargo Capital Finance, LLC as administrative agent (as successor to General Electric Capital Corporation) by entering into the Fifth Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) by and among the Company, Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Mid-Atlantic), Inc., the other credit parties named therein, the lenders named therein, Wells Fargo Capital Finance, LLC, as administrative agent, and the joint lead arrangers, joint book runners, co-syndication agents and documentation agent named therein.
The Amended and Restated Credit Agreement, among other things, (i)extends the maturity date of the credit facility from May21, 2019 to December22, 2022, (ii) increases the commitments under the senior secured asset based revolver provided for therein from $602.5million to $750million, (iii)increases the uncommitted incremental revolving capacity from $150million to $250million, (iv)provides that the unused line fee margin will be either 0.375% or 0.25%, depending on the Average Revolver Usage (as defined in the Amended and Restated Credit Agreement) of the borrowers, (v)lowers the interest rate (a)in the case of base rate revolving loans, to the base rate plus an applicable margin of 0.50% to 1.00% depending on the Average Availability (as defined in the Amended and Restated Credit Agreement) and (b)in the case of LIBOR revolving loans, to LIBOR (as defined in the Amended and Restated Credit Agreement) plus an applicable margin of 1.50% to 2.00%, depending on the Average Availability, (vi)lowers the margin applicable to the letter of credit fee to between 1.50% and 2.00%, depending on the Average Availability, and (vii)permits, subject to certain conditions, an unlimited amount of Permitted Acquisitions, Restricted Payments and prepayments of Indebtedness (in each case, as defined in the Amended and Restated Credit Agreement).
The Amended and Restated Credit Agreement continues to provide for, among other things, a $30million letter of credit sub-facility, and a guaranty by certain of the Company’s subsidiaries of the obligations under the credit facility. In addition, the credit facility remains secured by substantially all of the assets of the Company and certain of its subsidiaries.
The foregoing summary of the Amended and Restated Credit Agreement does not purport to be complete and is qualified in its entirety by the full text of the Amended and Restated Credit Agreement, which is attached hereto as Exhibit 10.1 and is incorporated by reference.
| Item 1.01. | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant |
The information included in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.01.
| Item 1.01. | Financial Statements and Exhibits |
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10.1 |
Fifth Amended and Restated Credit Agreement, dated December 22, 2017, by and among the Company, Great Northern Equipment, Inc., H&E Equipment Services (California), LLC and H&E Equipment Services (Mid-Atlantic), Inc. (collectively, the “Borrowers”), Wells Fargo Capital Finance, LLC, as administrative agent for each member of the Lender Group and the Bank Product Providers, and the joint lead arrangers, joint book runners, co-syndication agents and documentation agent party thereto. |
H&E Equipment Services, Inc. ExhibitEX-10.1 2 d610462dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 EXECUTION VERSION FIFTH AMENDED AND RESTATED CREDIT AGREEMENT by and among WELLS FARGO CAPITAL FINANCE,…To view the full exhibit click here
About H&E Equipment Services, Inc. (NASDAQ:HEES)
H&E Equipment Services, Inc. is an integrated equipment services company. The Company rents, sells and provides parts and services support for approximately four core categories of specialized equipment, such as hi-lift or aerial work platform equipment; cranes; earthmoving equipment, and industrial lift trucks. The Company’s segments include equipment rentals, which rents various types of construction and industrial equipment; new equipment sales, which sells new equipment in its core product categories; used equipment sales, which sells used equipment from its rental fleet, as well as from sales of inventoried equipment that it acquires through trade-ins from its equipment customers and through purchases of used equipment; parts sales, which sells new and used parts for the equipment the Company sells and also provides parts to its own rental fleet, and services, which provides maintenance and repair services for its customers’ equipment and to its own rental fleet.
