Equipment distributor, rental company and software firm Noble Iron this week said it has received approved financing for the purchase of about $10 million of new rental fleet for its southeast Texas equipment rental and dealership branch in Houston.
The company secured about $7.2 million of manufacturer financing, to be drawn over a number of branches, to acquire about $8 million of Terex aerial work platforms and light construction equipment. The purchase will significantly expand Noble Iron’s existing rental fleet offering in Texas, comprised primarily of wheel loaders, excavators, skid-steer loaders and backhoe loaders, much of which was obtained through the acquisition of certain assets of Bane Machinery Houston in July 2012.
The terms of the Terex fleet financing involve an initial down payment of about 10 percent, a 63-month term, and a current indicated interest rate of about 6.5 percent, based on a floating LIBOR.
Separately, Noble Iron has taken delivery of approximately $1.4 million of LiuGong Construction Machinery equipment under the terms of its Southeast Texas exclusive dealership agreement with LiuGong, and it has secured conventional lease financing in the amount of $700,000 for the fleet purchase. This financing has been provided by De Lage Linden Financial Services and is payable during 48 months, at a current interest rate of about 5 percent.
“These transactions mark a significant expansion of our business operations in Texas,” said Willie Swisher, Noble Iron CEO. “The financings for our Texas operations together with the $25 million facility the company has in place for its California operations are key milestones to Noble Iron’s continued growth into the rental and dealership channels.”
“Since launching into the rental and dealership sectors in August 2011, we have built an equipment fleet size of over $40 million,” said Nabil Kassam, Noble Iron executive chairman. ”The company is today operating in California, Texas, Canada and Australia. However, Noble Iron is still in its infancy. Our goal is to build a different and better operating model in the equipment industry, and the disruptive technologies and processes Noble Iron’s team has been developing have yet to be unveiled. We are pleased that our top tier manufacturing partners, Terex and LiuGong, support and appreciate the potential of Noble Iron.”