McGrath RentCorp (NASDAQ: MGRC) refinances with new $725M revolver
Rhea-AI Filing Summary
McGrath RentCorp has entered into a Third Amended and Restated Credit Agreement, completing a new $725 million five-year revolving credit facility with a syndicate of banks. This facility replaces the company’s prior $650 million line of credit and extends maturity to May 8, 2031.
The agreement includes a $40 million sublimit for standby letters of credit and a $20 million sublimit for swingline loans, and allows additional term loans or increased commitments under specified conditions. McGrath plans to use the proceeds for working capital, capital expenditures and other general corporate purposes.
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Insights
McGrath refinances and modestly upsizes its core credit facility.
McGrath RentCorp replaced its existing $650 million credit line with a larger $725 million revolving facility maturing on May 8, 2031. The structure includes sublimits for standby letters of credit and swingline loans, keeping flexible liquidity tools in place.
The facility permits additional term loans or increased commitments if conditions are met, giving room to scale borrowing capacity. Proceeds are earmarked for working capital, capital expenditures and general corporate purposes, indicating ongoing support for day-to-day operations and growth projects rather than a one-time transaction.
Future disclosures in company filings may detail any draw levels under the revolver and any use of the option to add term loans or expand commitments, which would clarify how actively this facility supports McGrath’s rental-focused growth strategy.
8-K Event Classification
Key Figures
Key Terms
Third Amended and Restated Credit Agreement financial
revolving credit facility financial
standby letters of credit financial
swingline loans financial
Regulation FD Disclosure regulatory
Emerging growth company regulatory
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry into a Material Definitive Agreement.
On May 8, 2026, McGrath RentCorp, a California corporation (the “Company”), entered into a Third Amended and Restated Credit Agreement with (i) Bank of America, N.A., serving as Administrative Agent, Swingline Lender and L/C Issuer, (ii) BofA Securities, Inc., serving as Joint Lead Arranger and Sole Bookrunner, (iii) U.S. Bank N.A. and Wells Fargo Bank, N.A. both serving as Joint Lead Arrangers and Co-Syndication Agents, and (iv) a syndicate of other lenders (the “Revised Credit Agreement”).
The Revised Credit Agreement extends the term of the revolving credit facility through May 8, 2031, and refinances the Company’s existing $650 million credit facility. The Revised Credit Agreement provides for (a) a $725,000,000 five-year revolving credit facility (the “Senior Credit Facility”) which includes a $40,000,000 sublimit for the issuance of standby letters of credit and a $20,000,000 sublimit for swingline loans, and (b) subject to the satisfaction of specified conditions, the ability for the Company from time to time after the closing of the transaction to add one or more tranches of term loans and/or increase the aggregate commitments under the Senior Credit Facility.
The proceeds of the Senior Credit Facility will be used for working capital, capital expenditure and other general corporate purposes.
The foregoing summary of the Revised Credit Agreement is not complete and is qualified in its entirety by the full text of the Revised Credit Agreement, a copy of which is filed as Exhibit 10.1 hereto and is incorporated herein by reference in its entirety.
Item 2.03 - Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
To the extent required by Item 2.03 of Form 8-K, the information contained in Item 1.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.03.
Item 7.01 Regulation FD Disclosure
On May 11, 2026, the Company issued a press release regarding the Revised Credit Agreement. The full text of the press release is furnished as Exhibit 99.1. The information under this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description |
2.1 |
Third Amended and Restated Credit Agreement, dated May 8, 2026, by and among McGrath RentCorp, Bank of America, N.A., U.S. Bank N.A., Wells Fargo Bank, N.A. and other lenders set forth therein. |
99.1 |
Press Release of McGrath RentCorp, dated May 11, 2026. |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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McGRATH RENTCORP |
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Date: |
May 11, 2026 |
By: |
/s/ Keith E. Pratt |
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Keith E. Pratt |
Exhibit 99.1
Contact
Keith E. Pratt
EVP & Chief Financial Officer
925-606-9200
PRESS RELEASE
FOR RELEASE May 11, 2026
McGrath Announces Completion of $725 Million Financing
Livermore, Calif – May 11, 2026 – McGrath RentCorp (“McGrath” or the “Company”) (Nasdaq: MGRC), a leading business-to-business rental company in North America, today announced that it has completed a $725 million credit facility with a syndicate of banks. The five-year facility matures on May 8, 2031, and replaces the Company’s existing $650 million line of credit. Bank of America, N.A. served as Joint Lead Arranger, Sole Bookrunner and Administrative Agent. U.S. Bank N.A. and Wells Fargo Bank, N.A. served as Joint Lead Arrangers and Co-Syndication Agents.
The proceeds of the facility will be used for working capital, capital expenditures and other general corporate purposes. Additional information regarding the new credit facility is available in the Company’s current report on Form 8-K, filed with the SEC on May 11, 2026.
ABOUT MCGRATH:
McGrath RentCorp (Nasdaq: MGRC) is a leading business-to-business rental company in North America with a strong record of profitable business growth. Founded in 1979, McGrath’s operations are centered on modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses. In addition, its TRS-RenTelco business offers electronic test equipment rental solutions. The Company’s rental product offerings and services are part of the circular supply economy, helping customers work more efficiently, and sustainably manage their environmental footprint. With over 45 years of experience, McGrath’s success is driven by a focus on exceptional customer experiences. This focus has underpinned the Company’s long-term financial success and supported 35 consecutive years of annual dividend increases to shareholders, a rare distinction among publicly listed companies.
McGrath is headquartered in Livermore, California. Additional information about McGrath and its businesses is available at mgrc.com and investors.mgrc.com.