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COLUMBIA, Mo. – EquipmentShare, one of the fastest-growing integrated equipment rental and equipment asset management companies in the United States, announces that it will increase its borrowing capacity from $2.1 billion to $3 billion through a senior secured asset-based revolving credit facility with Capital One, and the successful closing of its debut offering of $640 million of senior secured notes ( the “Notes”). The revolver, which has a $1 billion accordion option, builds upon the two previous issuances in 2021 and 2022 with Capital One.
“This is another important step in scaling our ability to meet the demand we have for our services,” says Jabbok Schlacks, CEO and co-founder of EquipmentShare. “Having a maturing capital structure allows more partners the ability to participate with us as we relentlessly focus on our customers and driving efficiencies across our operations and the industry.”
“The bigger we get – the more data we consume into T3, enabling unique advantages with our technology that drive bottom line impact to our customers,” says Willy Schlacks, President and co-founder of EquipmentShare.
In August 2021, Capital One served as the lead arranger and administrative agent for EquipmentShare’s original line of credit of $1.2 billion. In July 2022, the line of credit was increased to $2.1 billion. Over the same period of time, EquipmentShare expanded its footprint, entering new markets nationwide and acquiring thousands of new customers.
“Capital One is pleased to continue our support for EquipmentShare, a business that has proven itself as a leader in the construction industry no matter what the external environment has been,” Tim Tobin, Head of Asset Based Lending at Capital One, said. “It was the company’s strong foundation and strategic growth over the last few years that paved the way for positive receptivity for this transaction. Our deeply specialized team drew on its industry expertise to drive market enthusiasm, partnering closely with EquipmentShare as the company worked to secure Series E funding, a critical funding milestone. We were honored to partner with EquipmentShare once again, and look forward to watching what the future holds for the company.”
“This increase in our ABL led by Capital One, along with our recent inaugural bond issuance creates meaningful access to capital and new debt investors,” said Trevor Schauenberg, EquipmentShare’s CFO. “Expanding this efficient borrowing facility allows EquipmentShare to continue to grow into new US markets and distribute our unique solutions to our customers in the construction industry.”
Last month, EquipmentShare announced the completion of a $290 million funding round led by funds affiliated with BDT Capital Partners. The Series E round also included participation from existing investors such as RedBird Capital Partners, Tru Arrow Partners, and Sound Ventures, as well as several new investors including Brown Advisors.
Goldman Sachs & Co. LLC, acted as the lead book running manager, Wells Fargo Securities, Capital One Securities, Citigroup, Fifth Third Securities, J.P. Morgan, Mizuho, MUFG, SMBC Nikko and Truist Securities acted as joint book-running managers and Regions Securities LLC and UBS Investment Bank acted as co-managers for the successful private offering of the Notes.
The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States or to any U.S. persons unless pursuant to registration under the Securities Act, or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes are being offered only to persons reasonably believed to be "qualified institutional buyers" under Rule 144A of the Securities Act or, outside the United States, to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act.
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
