BUFFALO GROVE, Ill.--(BUSINESS WIRE)--
Essex Rental Corp. (OTC Pink: ESSX) ("Essex" or the "Company")
today provided an update on corporate activity.
Amendment to Coast Crane Credit Facility
On March 13, 2016, Coast Crane entered into a Fourth Amendment to its
Second Amended and Restated Credit Agreement (the "Amendment") with
Wells Fargo Bank, National Association as Agent for the lenders
thereunder (the "Coast Crane Credit Facility"). The amendment provides
for: extension of the maturity date of the Coast Crane Credit Facility
from March 12, 2017 to May 29, 2017; removal of the liquidity reserve;
extension of the date by which audited financial statements are to be
delivered to May 29, 2017; reduction in the amount of EBITDA required
under the minimum EBITDA covenant to $7.3 million; and removal of the
option of the Company to elect LIBOR based borrowings and interest at
the Prime Rate plus a margin of 4.75%. The amendment also provides
requirements for certain milestones with respect to the Company's
execution of strategic alternatives that would result in repayment of
amounts outstanding under the Credit Facility. The Company paid a 75
basis point fee on loans and commitments outstanding under the Credit
Facility at execution of the amendment and will be incurring an
additional 50 basis point fee on May 12, 2017 or upon earlier repayment
of the loan.
Separately, for purposes of calculating its borrowing base under the
Credit Agreement, as of February 28, 2017, the orderly liquidation value
of the Company's equipment assets as determined by an independent third
party appraisal firm, was approximately $76.6 million.
On February 28, 2017, two directors, John Climaco and Lee Keddie,
resigned from the board.
About Essex Rental Corp.
Essex is one of the largest providers in the western region of North
America of rental and distribution for mobile cranes (including crawler
cranes, truck cranes and rough terrain cranes), self-erecting cranes,
stationary tower cranes, elevators and hoists, and other lifting
equipment used in a wide array of construction projects. In addition,
the Company provides product support including installation,
maintenance, repair, and parts and services for equipment provided and
other equipment used by its construction industry customers. With a
large fleet, consisting primarily of cranes, as well as other
construction equipment and unparalleled customer service and support,
Essex supplies a wide variety of innovative lifting solutions for
construction projects related to power generation, petro-chemical,
refineries, water treatment and purification, bridges, highways,
hospitals, shipbuilding, offshore oil fabrication and industrial plants,
and commercial and residential construction.
Some of the statements in this press release and other written and oral
statements made from time to time by Essex and its representatives are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These statements include statements
regarding the intent and belief or current expectations of Essex and its
management team and may be identified by the use of words like
"anticipate", "believe", "estimate", "expect", "intend", "may", "plan",
"will", "should", "seek", the negative of these terms or other
comparable terminology. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual results may differ
materially from those projected in the forward-looking statements.
Important factors that could cause actual results to differ materially
from Essex's expectations include, without limitation, the continued
ability of Essex to successfully execute its business plan, the
possibility of a change in demand for the products and services that
Essex provides, intense competition which may require us to lower prices
or offer more favorable terms of sale, our reliance on third party
suppliers, our indebtedness, and ability to refinance it, which could
limit our operational and financial flexibility and any actions of our
lenders in relation to events of default under our indebtedness, global
economic factors including interest rates, general economic conditions,
geopolitical events and regulatory changes, our dependence on our
management team and key personnel, as well as other relevant risks
detailed on our website, www.essexrentalcorp.com.
The factors listed here are not exhaustive. Many of these uncertainties
and risks are difficult to predict and beyond management's control.
Forward-looking statements are not guarantees of future performance,
results or events. Essex assumes no obligation to update or supplement
forward-looking information in this press release whether to reflect
changed assumptions, the occurrence of unanticipated events or changes
in future operating results or financial conditions, or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170313006447/en/
Essex Rental Corp.
Chief Financial Officer
Source: Essex Rental Corp.
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