CIBC World Markets Corp., the investment-banking subsidiary of Canadian Imperial Bank of Commerce recently announced the completion of a $265 million refinancing for Las Vegas-based Ahern Rentals. The package includes the previously reported $175 million revolving credit facility arranged by Bank of America Business Capital Finance.
The new financing includes $90 million of senior secured notes purchased by funds managed by Tennenbaum Capital Partners LLC. The proceeds from the new financing were used to refinance Ahern’s current debt and provide capital to support Ahern Rentals’ current growth plans.
“We are pleased to have assembled a financing that reduces Ahern’s borrowing costs and provides them the financial flexibility and capacity to invest in their future growth,” said Keith Read, managing director and head of CIBC World Markets’ Private Finance Group.
“The new financing provides us with the appropriate capital structure to capitalize on our market opportunity and continue to invest in high-quality equipment and superior service,” said Ahern Rentals president Don Ahern.
Ahern told RER that although the company recently opened a branch in Fort Worth, Texas, which will complement its existing Dallas store, the company is not planning significant external growth in the first half of 2005.
“We want to grow our volumes within our existing stores,” he said. “We’re committed to in-store growth for 2005.” Ahern added the company spent about $75 million in fleet capital expenditures in 2004 and that he expected to spend a comparable amount in 2005.
Ahern Rentals is No. 15 on the RER 100, with 33 rental locations and seven dedicated customer repair centers in seven western states – Nevada, California, Arizona, Utah, Texas, Oregon and Colorado.