Mobile Mini Secures New Five-year, $250 Million Credit Facility; $80 Million Increase in Available Borrowings
TEMPE, Ariz--(BUSINESS WIRE)--Feb. 11, 2002--Mobile Mini, Inc. (Nasdaq:MINI) today announced that it has entered into a new five-year, $250 million revolving line of credit with Fleet Capital Corporation as Agent for a group of lenders.
The new asset based line replaces an asset based credit facility that had been in place since 1996 that, since the summer of 2000, was comprised of a $160 million revolver and a $10 million term loan. Fleet Securities, Inc. served as Sole Advisor, Lead Arranger and Book Manager in connection with syndicating the loan. Bank One, NA and JP Morgan Chase Bank served as Co-Syndication Agents and Bank of America, N.A. and Washington Mutual Bank served as Co-Documentation Agents.
In connection with this refinancing the Company will record an after tax extraordinary charge of approximately $800,000 (approximately $0.05 per diluted share) relating to the write-off of certain issuance costs related to the former loan.
"As noted when we reported fourth quarter/year-end results," stated Steven G. Bunger, Chairman, President & CEO of Mobile Mini, "our vastly enlarged equity base, an unbroken pattern of five consecutive years of record financial results, the viability of our business model in both difficult and prosperous economic periods, and our success replicating our branch model now to 36 locations in 19 states, were among the reasons for the support and confidence of our new lending group."
Lawrence Trachtenberg, Executive Vice President & CFO went on to say, "While interest rates under the new facility are slightly higher than under our previous agreement, we believe our borrowing rate is extremely favorable based on rates being offered on other loans today. The five-year length of the loan, the permissible leverage levels, and the $80 million increase in the loan limit, give us far greater flexibility to take advantage of expansion opportunities, whether it be enlarging the lease fleet or entering new markets. Today, we have approximately $166 million of outstanding borrowings under the new credit facility, giving us up to $84 million in additional availability as needed."
Mobile Mini, Inc. is the nation's leading provider of portable storage solutions through its fleet of over 72,000 portable storage units and portable offices. The Company currently has 36 branches and operates in 19 states. For two consecutive years Mobile Mini was named to Forbes Magazine's list of the 200 Best Small Companies in America and in 2001, the Company was named to the inaugural list of the 100 Fastest-Growing Publicly Held Small Businesses in America by Fortune Magazine (Small Business). Mobile Mini is included on the Russell 2000 and 3000 Indexes and the S&P Small Cap Index. |
