EquipmentShare Closes $3 Billion Senior Secured Asset-Based Revolving Credit Facility With Capital One Bank and Announces the Successful Closing of Its Debut Bond Offering

COLUMBIA, MO / ACCESSWIRE / May 10, 2023 / 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 U.S. 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.

About EquipmentShare

Headquartered in Columbia, Missouri, EquipmentShare is a nationwide construction solutions provider dedicated to solving industry pain points through smart jobsite technology and equipment rental, retail and service centers. EquipmentShare's cloud-connected operating system, T3, is powered by telematics and machine hardware to give construction and industrial companies a real-time view into their jobsite and operations. EquipmentShare's enterprise suite of apps is OEM-agnostic and can track and manage any piece of equipment, regardless of brand, to help fleet managers monitor assets, prevent theft and machine misuse, track employee hours and shifts, optimize machine efficiency, streamline maintenance and prevent unplanned downtime. EquipmentShare operates more than 150 facilities as of year end and employs approximately 4,000 team members. EquipmentShare's growing presence of locations, which includes equipment and service yards, research and development sites, dealerships for major brands, administrative offices and specialty solutions locations, serves the rising demand for the company's equipment and digital solutions. To learn more, visit www.equipmentshare.com.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $307.9 billion in deposits and $440.3 billion in total assets as of June 30, 2022. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange and is included in the S&P 100 index.

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as, but not limited to, "believes," "expects," "anticipates," "estimates," "intends," "plans," "could," "may," "will," "should," and similar expressions are intended to identify forward-looking statements. All forward-looking statements, including with respect to the offering described herein, rely on a number of assumptions, estimates and data concerning future results and events and are subject to a number of uncertainties and other factors, many of which are outside EquipmentShare's control that could cause actual results to differ materially from those reflected in such statements. Accordingly, EquipmentShare cautions that the forward-looking statements contained herein are qualified by these and other important factors and uncertainties that could cause results to differ materially from those reflected by such statements.

Contact Information:

Amy Susán
Director of PR & Communications
amy.susan@equipmentshare.com
(573) 890-0609

SOURCE: EquipmentShare