EquipmentShare, a leading equipment rental and asset management firm based in the United States, has successfully concluded a $600 million offering of 8.625% senior secured second lien notes due 2032. This exceeded the initial target of $500 million, showcasing substantial growth in the company’s debt issuance compared to previous endeavors. In 2023, EquipmentShare launched its first bond offering with $640 million in 9.00% Senior Secured Notes due 2028, followed by an additional $400 million from the same series later that year.
Following this funding round, S&P Global Ratings upgraded EquipmentShare’s issuer credit rating from ‘B-‘ to ‘B’, attributing it to effective deleveraging and a stable financial outlook. The new 2032 notes were assigned a ‘B’ rating, aligning with the improved status of the 2028 notes. Additionally, Moody’s Investors Service raised its rating on EquipmentShare’s ABL credit facility to ‘Ba2’ from ‘Ba3’, reflecting enhanced credit conditions and a stable outlook.
The proceeds from the issuance of the 2032 notes will be utilized to repay and refinance certain existing debts. These notes are secured by a second-priority lien, aligned with the first-priority lien obligations securing EquipmentShare’s assets. This financial strategy supports EquipmentShare’s continuous efforts to optimize its capital structure and strengthen its range of tech-enabled construction solutions.
If you are a proptech company and want to promote your products for free, go to proptechbuzz.com and submit your products. For investors or proptech buyers, sign up on our platform to stay informed about exciting updates and trends in the Proptech Ecosystem.
Explore more Proptech news at proptechbuzz.com/news, for news tips and promotions, reach out to marketing@proptechbuzz.com.
By Proptechbuzz
By Ravi Kumar