RSC's $1.1 billion asset-based revolver priced at Libor plus 250 bps

By Sara Rosenberg

New York, Feb. 15 - RSC Holdings Inc. closed on its $1.1 billion five-year senior secured asset-based revolving credit facility (Ba2/BB) that is initially priced at Libor plus 250 basis points with a 50 bps commitment fee, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Pricing can range from Libor plus 225 bps to 275 bps based on leverage.

After March 31, the commitment fee can range from 37.5 bps to 50 bps based on utilization.

Deutsche Bank Securities Inc., Wells Fargo Capital Finance LLC and Banc of America Securities LLC acted as the joint lead arrangers and bookrunners on the deal that was completed on Feb. 9, with Deutsche the administrative agent.

The company will be required to comply with a minimum fixed charge coverage ratio of 1.00 to 1.00 and a maximum leverage ratio of 5.25 to 1.00, which deceases over time to 4.25 to 1.00, upon the excess availability under the revolver falling below the greater of $125 million and 12.5% of the sum of the total commitments.

There is a $400 million accordion feature.

Proceeds were used to refinance the company's existing asset-based revolver.

At closing, about $383 million was drawn under revolver and there was $646.8 million available for additional borrowings, subject to borrowing base limitations, as reduced by outstanding letters of credit.

RSC is a Scottsdale, Ariz.-based provider of rental equipment, servicing the industrial, maintenance and non-residential construction markets.

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