GE Capital’s Transportation Finance business announced today that it has increased its credit facility for Rush Enterprises, Inc. (Nasdaq:RUSHA) (Nasdaq:RUSHB) to $750 million from $600 million. Rush, which operates the largest network of commercial vehicle dealerships in North America, will use the funds to purchase new and used truck inventory. GE Capital Markets served as the arranger on the transaction.
Rush is in the process of expanding in North Carolina, Ohio, Kansas, Missouri and Virginia. Once completed, there will be 88 Rush Truck Centers in 18 states. The company’s dealerships sell multiple brands of heavy-duty Class 8 trucks as well as medium-duty Class 4-7 equipment and light-duty vehicles.
GE Capital and its antecedent companies have been financing equipment for New Braunfels, TX-based Rush for 30 years. The new agreement extends through July 11, 2016.
“We appreciate our long-standing relationship with GE Capital’s Transportation Finance team,” said Rusty Rush, the company’s chairman and CEO. “We’re confident that we can depend on GE to be there for us as we continue to expand our geographic footprint throughout the U.S.”
For more than 35 years, GE Capital, Transportation Finance has supported the commercial trucking industry with customer-centric financing programs that enable dealers to stock products. Inventory financing, also called floorplan financing, is an essential component of a successful manufacturer-dealer relationship. Manufacturers expect to benefit from improved product flow and increased sales opportunities, while dealers generally obtain enhanced credit availability and flexible programs.
“Rush is a key player in the U.S. trucking industry and we’re proud to help them grow their business,” said Dan Clark, president and general manager of GE Capital, Transportation Finance. “As dealers continue to grow their businesses, either through acquisition or organically, they need to have a reliable source of funding and that is what we offer. And that’s why Rush and many other successful dealerships look to GE Capital for funding.”