Ahern Rentals inks work letter for potential $350 million exit loan

By Caroline Salls

Pittsburgh, March 19 - Ahern Rentals, Inc. requested court approval to enter into a work letter with Bank of America, NA and BofA Merrill Lynch for a potential $350 million senior secured asset-based exit revolving credit facility, according to a Monday filing with the U.S. Bankruptcy Court for the District of Nevada.

Ahern said BofA Merrill Lynch would act as the lead arranger and bookrunner in connection with the arrangement of the facility, and Bank of America would act as the administrative agent.

The company said it needs the financing to pay its debtor-in-possession facility and term loan in full on the effective date of its plan of reorganization.

Under the proposed work letter, Ahern will be obligated to pay the banks and their affiliates all reasonable out-of-pocket fees and expenses and pay all reasonable and documented legal fees and expenses incurred by the banks' counsel, Kaye Scholer LLP.

The letter also requires the company to provide specified indemnities to the banks.

Ahern Rentals, a Las Vegas-based equipment rental company, filed for bankruptcy on Dec. 22, 2011 under Chapter 11 case number 11-53860.

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