WillScot closes amended, extended asset-based revolving credit facility

WillScot (WSC) Holdings amended its asset-based lending credit facility to reduce borrowing costs and extend the maturity date to October 16, 2030. Under the new terms of the Amended ABL Revolver, interest rate spreads above the Term SOFR- and Term CORRA-based rates lower to no more than 137.5 basis points, and the spreads above the base rate and Canadian prime rate shall be reduced to no more than 37.5 bps. Additionally, interest rate adjustments to the reference rates of 10 bps have been removed, effectively bringing current Term SOFR- and Term CORRA-based rate spreads inclusive of the interest rate adjustments from 160 bps previously, to 137.5 bps, an initial savings of 22.5 bps The Amended ABL Revolver also provides for an additional step down in interest rate spreads of 12.5 bps to 125 bps after September 30, 2026, if average availability in excess of 50% is achieved and maintained. Thereafter, if average availability in excess of 50% is maintained and net leverage is less than 3.0x, the interest rate spread reduces by an additional 12.5 bps to 112.5 bps. Additional savings will be achieved by reducing the aggregate principal amount of the credit facility from $3.7 billion to $3.0 billion, which will reduce undrawn line fees, while the accordion feature increases from $750 million to $1.0 billion. As of transaction close, the Company had available borrowing capacity of approximately $1.4 billion under the Amended ABL Revolver.