EquipmentShare signs €2.8 billion loan agreement
11 May 2023
US-based equipment rental specialist EquipmentShare has increased its financial borrowing capacity to US$3 billion (€2.8 billion), via a new loan facility with banking group Capital One.
The loan arrangement, which is secured against the rental company’s assets and includes a $1 billion (€915 million) accordion option, will enable the company to borrow the funds up to the maximum value as and when needed.
Jabbok Schlacks, CEO and co-founder of EquipmentShare, said, “This is another important step in scaling our ability to meet the demand we have for our services.
“Having a maturing capital structure allows more partners the ability to participate with us as we relentlessly focus on our customers and driving efficiencies across our operations and the industry.”
The loan builds on previous agreements between the parties. In August of 2021 Capital One provided EquipmentShare with a $1.2 billion (€1.1 billion) loan facility, which was increased to $2.1 billion (€1.9 billion) in July of 2022 after the rental company expanded both its customer base and operational footprint.
Tim Tobin, head of asset based lending at Capital One, said, “Capital One is pleased to continue our support for EquipmentShare, a business that has proven itself as a leader in the construction industry no matter what the external environment has been.
“It was the company’s strong foundation and strategic growth over the last few years that paved the way for positive receptivity for this transaction. Our deeply specialized team drew on its industry expertise to drive market enthusiasm, partnering closely with EquipmentShare as the company worked to secure Series E funding, a critical funding milestone.”
EquipmentShare’s CFO, Trevor Schauenberg, said, “Expanding this efficient borrowing facility allows EquipmentShare to continue to grow into new US markets and distribute our unique solutions to our customers in the construction industry.”
This latest news comes just weeks after EquipmentShare initiated an investor funding round, that aims to raise $750 million (€684 million) through a company bond issue.
It saw the company enter the bond market for the first time, and the proceeds of the private offering will be used to repay and refinance some of its existing debt and for general corporate purposes.
Prior to this, EquipmentShare also completed a $290 million Series E funding. Completed in April of this year, funds from the round will be used to grow the company’s coverage and will enable it to continue its investment in digital solutions.
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