Item 1.01 Entry into a Material Definitive Agreement.
Amendment No.1 to Third Amended and Restated Credit Agreement
On June 30, 2021, United Rentals, Inc. ("Holdings"), United Rentals (North
America) Inc. ("URNA"), the subsidiaries of URNA party thereto as Guarantors,
the subsidiaries of URNA party thereto as Borrowers, Bank of America, N.A., as
the agent and certain other lenders under the Credit Agreement (as defined
below) entered into an amendment (the "ABL Amendment") to the Third Amended and
Restated Credit Agreement, dated as of February 15, 2019 (as amended to the date
hereof, including by the ABL Amendment, the "Credit Agreement"), among Holdings,
URNA, the subsidiaries of URNA party thereto as guarantors, the subsidiaries of
URNA party thereto as Borrowers, Bank of America, N.A., as the agent, and the
other financial institutions party thereto from time to time.
The ABL Amendment was executed primarily to provide for a separate tranche of
revolving commitments in an aggregate principal amount equal to US$175,000,000
(the "ANZ Tranche") to be available to United Rentals Australia Pty Limited and
United Rentals New Zealand (each a subsidiary of URNA and, together, the "ANZ
Borrowers"), which URNA recently acquired. The aggregate amount committed under
the Credit Agreement of $3,750,000,000 remained unchanged, and the amount of the
facility available to be drawn by other Borrowers was reduced to reflect the
addition of the ANZ Tranche. Borrowings under the ANZ Tranche will be subject to
the borrowing base that applies to all borrowings under the ABL Facility. The
ANZ Tranche will mature on the same date as the ABL Facility.
The obligations of the ANZ Borrowers under the ANZ Tranche will benefit from the
same guarantees and security as apply to other loans of non-U.S. Borrowers under
the Credit Agreement, and the ANZ Borrowers will be jointly liable for any
borrowings under the ANZ Tranche.
The terms of the ABL Facility allow for increases to the ANZ Tranche, subject to
agent and/or lender consent. Amounts drawn under the ANZ Tranche bear annual
interest at (i) the LIBOR rate (or the Bank Bill Rate) plus a margin of 1.25% to
1.75%, (ii) a base rate (equal to the highest of Bank of America, N.A.'s prime
rate, the federal funds rate plus 0.5% and 30-day LIBOR plus 1.0%) plus a margin
of 1.25% to 1.75% or (iii) a foreign base rate applicable to swingline loans
under the ANZ Tranche equal to (a) with respect to swingline loans denominated
in Australian dollars, the per annum rate of interest (rounded upward to the
next 1/100th of 1%) equal to the Reserve Bank of Australia's "cash rate" plus a
margin of 1.25% to 1.75% and (b) with respect to swingline loans denominated in
New Zealand Dollars, the per annum rate of interest (rounded upward to the
nearest 1/100th of 1%) equal to the rate announced from time to time by the
Reserve Bank of New Zealand as the "official cash rate" plus a margin of 1.25%
to 1.75%. The interest rate margins are subject to adjustments based on
utilization of the facility and, under certain circumstances, URNA's total
indebtedness leverage ratio on a consolidated basis.
The ANZ Tranche is subject to the same covenants, events of default and other
terms under the Credit Agreement that apply to other borrowings under the ABL
Facility.
The foregoing description of the ABL Amendment does not purport to be complete
and is subject to, and qualified in its entirety by, the full text of the ABL
Amendment, which is filed as Exhibit 10.1 to this Form 8-K and incorporated
herein by reference.
Item 9.01. Financial Statements and Exhibits.
10.1 First Amendment to the Third Amended and Restated Credit Agreement,
dated as of June 30, 2021, to the Third Amended and Restated Credit
Agreement, dated as of February 15, 2019, among United Rentals (North
America), Inc., United Rentals Inc., the other Borrowers party thereto,
the other Guarantors party thereto, the Lenders party thereto, and Bank
of America, N.A., as Agent.
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