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.
Essex Rental Corp.
Kory Glen, (847) 215-6522
Merola, (847) 215-6514
Manager of Investor Relations
Source: Essex Rental Corp.