BUFFALO GROVE, Ill.--(BUSINESS WIRE)--Essex Rental Corp. (Nasdaq: ESSX) ("Essex") today announced that it entered into an amendment to its Coast Crane credit agreement. The modification to the credit agreement provides Essex with greater flexibility to capitalize on opportunities to increase revenues associated with the sale of new equipment. The modification also amends language in the existing credit agreement related to the application of asset sale proceeds from new and used equipment sales.
Kory Glen, Chief Financial Officer stated, “The amendment to the revolving credit facility will allow us to take advantage of opportunities to grow our new equipment distribution business. In our experience, new equipment sales are enhanced if we are able to carry new equipment for resale in inventory. Prior to amending our loan agreement, we were limited in the amount of new equipment for resale that we could purchase, because such purchases were deemed capital expenditures, and therefore, were included in the calculation of our fixed charges. As a result of the loan amendment, these purchases are now deemed inventory and are not included in our fixed charge ratio. The loan modification will provide us with greater flexibility to capitalize on opportunities within this segment of our business.”
Mr. Glen continued, “Additionally, we clarified language in our loan agreement to ensure that we are not required to use the proceeds from the sale of new or used equipment to permanently reduce debt.”
A copy of the First Amendment to the Second Amended and Restated Credit Agreement is available on our website at http://investor.essexcrane.com/sec.cfm
About Essex Rental Corp.
Essex, through its subsidiaries, is one of North America's largest providers of rental and distribution for mobile cranes (including lattice-boom crawler cranes, truck cranes and rough terrain cranes), self-erecting cranes, stationary tower cranes, elevators and hoists, and other lifting equipment used in a wide array of construction projects. In addition, the Company provides product support including installation, maintenance, repair, and parts and services for equipment provided and other equipment used by its construction industry customers. With a large fleet, consisting primarily of cranes, as well as other construction equipment and unparalleled customer service and support, Essex supplies a wide variety of innovative lifting solutions for construction projects related to power generation, petro-chemical, refineries, water treatment and purification, bridges, highways, hospitals, shipbuilding, offshore oil fabrication and industrial plants, and commercial and residential construction.
Some of the statements in this press release and other written and oral statements made from time to time by Essex and its representatives are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the intent and belief or current expectations of Essex and its management team and may be identified by the use of words like "anticipate", "believe", "estimate", "expect", "intend", "may", "plan", "will", "should", "seek", the negative of these terms or other comparable terminology. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from Essex's expectations include, without limitation, the continued ability of Essex to successfully execute its business plan, the possibility of a change in demand for the products and services that Essex provides, intense competition which may require us to lower prices or offer more favorable terms of sale, our reliance on third party suppliers, our indebtedness which could limit our operational and financial flexibility, global economic factors including interest rates, general economic conditions, geopolitical events and regulatory changes, our dependence on our management team and key personnel, as well as other relevant risks detailed in our Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission and available on our website, www.essexrentalcorp.com. The factors listed here are not exhaustive. Many of these uncertainties and risks are difficult to predict and beyond management's control. Forward-looking statements are not guarantees of future performance, results or events. Essex assumes no obligation to update or supplement forward-looking information in this press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results or financial conditions, or otherwise.