EquipmentShare Secures $600 Million Through Senior Secured Notes

EquipmentShare, a prominent equipment rental and asset management company in the U.S., announced the successful closure of a $600 million offering of 8.625% senior secured second lien notes due 2032. This upsized offering exceeded the initially planned $500 million, marking a significant expansion from the company's earlier debt issuances. Previously in 2023, EquipmentShare launched its debut 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 the latest funding activity, S&P Global Ratings upgraded EquipmentShare’s issuer credit rating to 'B' from 'B-', citing effective deleveraging and a stable financial outlook. The new 2032 notes received a 'B' rating, consistent with the upgraded status of the 2028 notes. Additionally, Moody’s Investors Service elevated its rating on EquipmentShare’s ABL credit facility to 'Ba2' from 'Ba3', reflecting improved credit conditions and a stable outlook.

The proceeds from the 2032 notes issuance are designated for repaying and refinancing certain existing debts. The notes are secured by a second priority lien that is pari passu with the first priority lien obligations that secure EquipmentShare's assets. This strategic financial maneuver supports EquipmentShare’s ongoing efforts to optimize its capital structure and bolster its comprehensive suite of tech-enabled construction solutions.