EquipmentShare Achieves Financial Milestone With $600 Million Notes Offering And Agency Upgrades

EquipmentShare.com Inc., a rapidly expanding entity in the integrated equipment rental and asset management sector in the United States, has recently concluded its offering of $600 million in senior secured second lien notes due 2032, known as the "2032 Notes". This offering marks an increase from the initially planned $500 million, showcasing the company's robust financial strategy and market confidence. This development follows a series of successful bond offerings by EquipmentShare in 2023, starting with its inaugural bond offering on May 9, 2023, which featured 9.00% Senior Secured Notes due 2028 amounting to $640 million, referred to as the "2028 Notes". A subsequent offering of additional 2028 Notes worth $400 million was made on September 18, 2023.

On April 11, 2024, EquipmentShare's financial health received a notable endorsement from S&P Global Ratings ("S&P"), which upgraded its issuer credit rating to B from B-, attributing this positive adjustment to the company's effective deleveraging efforts. The outlook provided by S&P is stable. Furthermore, S&P elevated the rating of EquipmentShare's 2028 Notes to B from B- and assigned a B rating to the newly issued 2032 Notes. In a parallel development, Moody's Investors Service upgraded EquipmentShare's ABL credit facility to Ba2 from Ba3, also under a stable outlook.

The proceeds from the issuance of the 2032 Notes are primarily earmarked for the repayment and refinancing of certain existing debts. These notes will be secured alongside the 2028 Notes by a second priority lien on nearly all assets that secure any first priority lien obligations held by EquipmentShare. It is important to note that the 2032 Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and were offered solely to "qualified institutional buyers" or non-U.S. persons in compliance with applicable regulations.

Founded in 2015 and headquartered in Columbia, MO, EquipmentShare has quickly ascended as a leading technology-enabled solutions provider in the construction industry. The company's mission is to enhance productivity and safety on job sites through its nationwide equipment distribution network coupled with its proprietary technology and telematics system, T3. This innovative approach offers unparalleled visibility and connectivity to contractors and builders, aiming to improve job site outcomes significantly. Presently, EquipmentShare boasts an impressive footprint with 215 prime rental, retail, and service locations across 38 states in the U.S., underscoring its position as one of the country's fastest-growing equipment solutions providers.

This press release includes forward-looking statements that involve certain risks and uncertainties. These statements are based on assumptions and estimates which may affect actual results and are not guarantees of future performance. The company advises that these forward-looking statements are subject to various factors that could cause actual outcomes to differ materially from those indicated in such statements.