RSC Holdings amends second-lien loan, permitting buybacks at discount

By Sara Rosenberg

New York, Aug. 24 - RSC Holdings Inc. amended its second-lien term loan, allowing for prepayments of the loan at a discount for one year, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The company can prepay a total of $300 million of the second-lien loan through the Dutch auctions.

In addition, the Dutch auctions are only allowed to take place if the available commitments under the company's senior secured asset-based loan equal or exceed $300 million after giving effect to the prepayment.

Funds for the prepayment can come from internally generated cash, drawings under the asset-based loan or equity proceeds.

During the period in which the prepayments are permitted, the company may not issue senior secured notes or other debt securities that are secured by a lien on any material assets of the RSC entities.

The amendment was effective as of Aug. 21.

Deutsche Bank is the administrative agent on the deal.

Lenders received a 10 basis point consent fee.

RSC is a Scottsdale, Ariz.-based company involved in the rental of various construction and industrial equipment.

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