McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business to business rental company, today announced that it has entered into a new $420 million credit facility with a syndicate of banks. The five year facility matures on June 15, 2017 and replaces the Company’s existing $350 million line of credit. Bank of America, N.A., served as Administrative Agent and Union Bank of California N.A., served as Syndication Agent. Merrill Lynch, Pierce, Fenner & Smith Incorporated served as the Sole Lead Arranger and Sole Book Manager.
The proceeds of the new 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, to be filed with the SEC on June 18, 2012.
Dennis Kakures, President and CEO stated, “We are very pleased to have secured this financing. Increasing the size of our credit facility in this volatile financial market environment is a testament to the strength of our balance sheet and our cash flow generating businesses. With the increased capital this financing provides, we are well positioned to take advantage of opportunities for growing a larger McGrath RentCorp in the years ahead.”
ABOUT MCGRATH RENTCORPFounded in 1979, McGrath RentCorp is a diversified business-to-business rental company. Under the trade name Mobile Modular Management Corporation (Mobile Modular), it rents and sells modular buildings to fulfill customers’ temporary and permanent classroom and office space needs in California, Texas, Florida, North Carolina, Georgia, Maryland, Virginia and Washington, D.C. The Company’s TRS-RenTelco division rents and sells electronic test equipment and is one of the leading rental providers of general purpose and communications test equipment in the Americas. In 2008, the Company purchased the assets of Adler Tank Rentals, a New Jersey based supplier of rental containment solutions for hazardous and nonhazardous liquids and solids with operations today in the Northeast, Mid-Atlantic, Midwest, Southeast, Southwest and West. Also, in 2008, under the trade name TRS-Environmental, the Company entered the environmental test equipment rental business serving the Americas. In 2008, the Company also entered the portable storage container rental business in Northern California under the trade name Mobile Modular Portable Storage, and in 2009 expanded this business into Southern California, Texas and Florida. For more information on McGrath RentCorp and its operating units, please visit our websites:
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