CIT Northbridge Credit Provides $75 Million to Cisco Equipment Rentals

Rhea-AI Summary

First Citizens Bank announced that CIT Northbridge Credit, guided by First Citizens Institutional Asset Management, provided a $75 million revolving credit facility to Cisco Equipment Rentals.

This Texas-based company specializes in equipment rentals, new and used sales, parts, and service. The credit facility will refinance and consolidate existing loans, supporting their growth-oriented business plan and restructuring efforts.

The financing aims to help Cisco diversity into new markets and sectors across Texas. Both companies expressed mutual satisfaction and optimism about the strategic collaboration and its impact on Cisco's market position.

Positive

• CIT Northbridge Credit provided a $75 million revolving credit facility to Cisco Equipment Rentals.
• The credit will refinance and consolidate multiple lending facilities, facilitating Cisco's business growth and restructuring.
• CIT Northbridge Credit and First Citizens Institutional Asset Management have shown strong commitment and expertise in supporting Cisco's business goals.
• The facility offers Cisco significant managerial and operational flexibility.
• The financing aids Cisco's efforts to diversify sectors and enter new markets across Texas.

Negative

• The need for refinancing and consolidation suggests existing financial strain or suboptimal loan arrangements at Cisco Equipment Rentals.
• The complex restructuring and recapitalization might indicate underlying financial instability.
• Consolidating multiple existing loans into one facility may increase dependency on a single lender.

News Market Reaction – FCNCA

-1.08%

-1.08% Session move

In the trading session that priced this news, FCNCA declined 1.08%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

NEW YORK, May 30, 2024 /PRNewswire/ -- First Citizens Bank today announced that CIT Northbridge Credit, as advised by First Citizens Institutional Asset Management, LLC, provided a $75 million revolving credit facility to Cisco Equipment Rentals, a Texas-based provider of equipment rentals, new and used equipment sales, parts and service. 

The revolver was used to refinance and consolidate multiple existing lending facilities supporting a growth-oriented business plan and in conjunction with a complex restructuring and recapitalization of the balance sheet.

"We appreciate the diligence and expertise provided by the CIT Northbridge Credit team in arranging this credit facility," said Randy Agee, interim CEO at Cisco Equipment Rentals. "They learned our business structure and objectives by collaboratively working with key Cisco team members, were available to walk the team through questions, and combined First Citizens' asset management expertise with Cisco's vision and needs to deliver a financing package that will excel Cisco's rental business forward."

"We're pleased to provide this financing to Cisco Equipment Rentals as they continue to diversify sectors and enter new markets across Texas," said Neal Legan, who leads the team that advises CIT Northbridge Credit. "The new facility provides management and ownership significant flexibility to strengthen Cisco Equipment Rentals' market position, and we look forward to supporting their business plans going forward."

CIT Northbridge Credit is a trusted financial partner supporting middle-market companies with a broad range of flexible asset-based debt solutions. A joint venture advised by First Citizens Institutional Asset Management, it provides revolving and term loan commitments from $15 million to $150 million to companies across various industries and business cycles, and serves primarily as sole lender, agent, club participant or co-lender.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Discover more at firstcitizens.com.

MEDIA RELATIONS:
Lexa Tutela Losey
212-461-5305
Lexa.Tutela@firstcitizens.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/cit-northbridge-credit-provides-75-million-to-cisco-equipment-rentals-302159320.html

SOURCE First Citizens Bank

FAQ

What is the value of the credit facility provided to Cisco Equipment Rentals by CIT Northbridge Credit?

CIT Northbridge Credit provided a $75 million revolving credit facility to Cisco Equipment Rentals.

What will Cisco Equipment Rentals use the $75 million credit facility for?

The credit facility will be used to refinance and consolidate multiple existing lending facilities, supporting a growth-oriented business plan and restructuring.

How will the new credit facility impact Cisco Equipment Rentals?

The facility will provide Cisco significant flexibility to strengthen its market position and diversify into new sectors and markets across Texas.

Who advised on the $75 million credit facility to Cisco Equipment Rentals?

The credit facility was advised by First Citizens Institutional Asset Management,

What is the purpose of CIT Northbridge Credit's involvement with Cisco Equipment Rentals?

CIT Northbridge Credit aims to support Cisco Equipment Rentals' growth, diversification, and market expansion through the provided credit facility.