Ashtead amends loan, increasing size, extending maturity, lowering spreads

By Sara Rosenberg

New York, Nov. 15 - Ashtead Group plc amended its asset-based senior secured credit facility, increasing the size to $800 million from $675 million, pushing out the maturity by one year to November 2010 and lowering the interest rate, according to a company news release.

Pricing on the loan was reduced to a range of Libor plus 150 to 250 basis points from the previous range of Libor plus 225 to 300 bps.

In addition, the amendment revised the calculation of the borrowing base, providing an increase in availability of about $90 million, and removed the maximum capital expenditure and minimum EBITDA covenants.

"The amended facility gives us substantial flexibility as we continue to invest in the group's future development, particularly in the United States, where conditions in our core market remain strong. It also gives us an immediate reduction of 50 bps in the cost of our first-priority senior debt, which totaled £275 million ($487 million) at 31 October 2005," said Ian Robson, finance director, in the release.

Ashtead is a Leatherhead, U.K.-based equipment rental group for the construction, industrial and homeowner markets.

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