Capital One announced this week that it has served as administrative agent for a $1.2 billion senior secured asset-based revolving line of credit for EquipmentShare, a full-service equipment rental supplier for the construction industry. The revolver has an $800 million accordion option, and Capital One also arranged a $500 million private term loan as part of the deal.
“Our ability to take on a transaction of this size and complexity underscores the strength of our balance sheet and the expertise of the team we have assembled,” said Bob McCarrick, executive vice president and head of middle market relationships at Capital One.
“This is a key step in our evolution as we continue to grow,” said Jabbok Schlacks, CEO and co-founder of EquipmentShare. “In conjunction with our recent $230 million investment round, it is helping us expand our suite of technology solutions and build out our national footprint to better serve the needs of our customers.”
In addition to offering next-generation equipment rentals and sales and providing such services including maintenance and repair, the privately held company has developed a proprietary telematics-powered and cloud-based technology operating system for construction, T3. It enables contractors to connect data and workflows and better manage assets, materials, and team members from a single platform, helping them improve productivity and efficiency as well as experience significant time and cost savings.
Since its incorporation in 2015, EquipmentShare has experienced rapid growth, spurred by the demand for its fleet management technology and equipment solutions. It plans to have more than 100 locations across the country by the end of 2021.
“The company has demonstrated its ability to manage growth wisely while positioning itself to ride out the cycles that frequently occur in the industry,” said Tim Tobin, head of asset-based lending at Capital One. “It was an excellent opportunity for us, and we are all excited by EquipmentShare's growth and value-add proposition.”
The Capital One asset-based lending team has extensive experience underwriting complex businesses like EquipmentShare. “I was impressed with the Capital One team’s business acumen and the efforts they took to understand our business, speak with customers and analyze the competitive landscape,” said Trevor Schauenberg, EquipmentShare’s chief financial officer. “Having them validate our vision with a facility of this size means a great deal to us.”