Equipment Rental Company to Continue Normal Operations

MIAMI, May 16 /PRNewswire/ -- Neff Rental, Inc. (the "Company"), a national, privately owned construction equipment rental company announced today that the Company and certain of its affiliates have commenced a prearranged reorganization under Chapter 11 of the United States Bankruptcy Code in New York to deleverage the Company's balance sheet and eliminate more than $400 million of debt.  The Company has filed its prearranged chapter 11 plan, and has obtained full commitments from its existing revolving lenders to provide a $175 million debtor in possession and exit financing and has secured support from other key stakeholders, including the Company's largest first lien term loan lenders.  

The restructuring is backed by certain funds managed by Wayzata Investment Partners and Apollo Capital Management (holding, in the aggregate, in excess of 67% of the aggregate principal amount of the Company's first lien term loan), who have agreed to, among other things, vote in favor of the Company's prearranged plan, exchange their first lien term loans for equity, and have committed to backstop an investment of up to $119 million of new equity to recapitalize the Company's business and provide for future capital needs.  In addition, the Company's plan is subject to higher and better offers that may allow for additional recovery to the Company's creditors.  

"The filing of the Company's Chapter 11 Plan culminates the process that the Company undertook several months ago to reduce debt and puts the Company on sound long term financial footing," said CEO Graham Hood.  "The restructuring will provide liquidity for ongoing business needs and allow Neff to make significant investments in its rental equipment fleet."

The Company's management team and employees will continue to operate the business in the ordinary course throughout the restructuring.  "It is business as usual while we move forward to address our capital structure.  During this process the Company will continue to deliver high quality equipment and services to its customers as normal," continued Hood.  Together with cash flows from operations, the $175 million in committed financing provides stability and ample liquidity to fund daily operations without interruption, including payments to vendors and to meet all customer and employee obligations.

With its committed exit financing and strong support from its stakeholders, the Company expects to complete its prearranged restructuring in the near term. A copy of the plan can be viewed free of charge at the Company's restructuring website:  www.kccllc.net/neff.

The Company has hired AlixPartners LLP, Kirkland & Ellis LLP and Miller Buckfire & Co. to assist in its restructuring efforts.

About Neff Rental, Inc.

Neff Rental provides construction companies, golf course developers, industrial plants, the oil industry, and governments with reliable and quality equipment that is delivered on time where it is needed. With more than 1,000 employees operating from branches coast to coast, Neff Rental is ranked by Rental Equipment Register (RER) magazine as one of the nation's 10 largest equipment rental companies. For more information, visit http://www.neffrental.com/home.aspx

SOURCE Neff Rental, Inc.

Back to top

RELATED LINKS
http://www.neffrental.com