Essex Crane Rental Corp. rents and sells lattice-boom crawler cranes and attachments. It also offers service parts; booms; and boom accessories, such as boom tops, boom butts, jibs, blocks, and balls. The company serves construction projects related to power generation, petro-chemical, refineries, water treatment and purification, bridges, highways, hospitals, shipbuilding, and commercial construction. Essex Crane Rental Corp. was incorporated in 2000 and is based in Buffalo Grove, Illinois. The company has service centers in Alabaster, Alabama; Arcola, Texas; Longmont, Colorado; Fontana, California; and Tampa, Florida. Essex Crane Rental Corp. operates as a subsidiary of Essex Rental Corp.
1110 Lake Cook Road
Buffalo Grove, IL 60089-1974
Founded in 2000
Essex Crane Rental Corp. Enters Fourth Amended and Restated Credit Agreement
May 16 14
On May 13, 2014, Essex Crane Rental Corp. entered into the Fourth Amended and Restated Credit Agreement by and among Essex Crane, Essex Holdings, LLC, Wells Fargo Capital Finance LLC, as Administrative Agent and itself as a lender, PNC Bank, National Association, Alostar Bank of Commerce, Kayne Senior Credit Fund (QP) L.P., Kayne Senior Credit Fund L.P., 1492 Capital LLC, and Medley Capital Corporation as lenders. The purpose of the refinancing was to provide a term loan in the amount of $30.0 million, provide additional availability under the revolving loan portion of the facility and eliminate the required March 2015 step down in the revolving credit facility. The credit facility provides for a revolving loan in the amount of $145.0 million, with a $20.0 million aggregate sublimit for letters of credit, and a $30.0 million term loan. Essex Crane may borrow on the revolving loan an amount equal to the sum of 85% of eligible net receivables and 75% of the net orderly liquidation value of eligible equipment. The aggregate commitment will be reduced by: (i) on an individual transaction basis, 100% of the net cash proceeds from the sales of certain assets and (ii) on an annual basis, 60% of free cash flow, other than net cash proceeds from certain asset sales, as defined within the credit agreement. The maximum commitment under the Essex Crane Revolving Credit Facility may not exceed $130.0 million beginning on February 28, 2016. The revolving loan and term loan mature on October 31, 2016 and May 13, 2019, respectively. The Essex Crane Revolving Credit Facility is collateralized by a first priority security interest in substantially all of Essex Crane's assets. Under the terms of the Essex Crane Revolving Credit Facility, borrowings on the revolving loan accrue interest at the borrower's option of either (a) the bank's prime rate plus the applicable prime rate margin of 1.75% per annum or (b) a Euro-dollar rate based on the rate the bank offers deposits of U.S. Dollars in the London interbank market (LIBOR) plus the applicable LIBOR margin of 3.75% per annum. Borrowings on the term loan accrue interest at LIBOR plus the applicable LIBOR term loan margin of 10.50% per annum with a LIBOR floor of 1.00%. Essex Crane is also required to pay a monthly commitment fee with respect to the undrawn commitments under the Essex Crane Revolving Credit Facility of 0.375% per annum. The Essex Crane Revolving Credit Facility requires Essex Crane to maintain a trailing twelve month fixed charge coverage ratio of not less than 1.10 to 1.00 commencing February 28, 2014. Additionally, Essex Crane must generate net cash proceeds, through the sale of certain assets, of not less than $8.0 million by March 31, 2016 with not less than $3.0 million of net cash proceeds generated by March 31, 2015. The Essex Crane Revolving Credit Facility also provides for an annual limit on certain capital expenditures of $2.0 million and limits the ability of Essex Crane to make distributions to affiliates. On May 13, 2014, the company obtained a waiver from the holders of its unsecured promissory notes that waived the mandatory prepayment provision upon the consummation of any Essex Crane Revolving Credit Facility refinancing to the extent that the terms and conditions of the refinancing permit the Company to use the proceeds from refinancing for the repayment of the outstanding principal balance of the unsecured promissory notes. The mandatory prepayment provision remains effective related to any future refinancing of the Essex Crane Revolving Credit Facility or other senior secured debt. In exchange for the waiver, the Company made a partial prepayment to the holders of the unsecured promissory notes in the amount of $2.0 million plus accrued interest.