One Source

One Source Equipment Rentals ("One Source") is one of the largest providers of aerial equipment rental services in the Midwest. Since its founding in 2001, the Company has gained a reputation for superior customer service, reliability, equipment availability and quick response time. The company provides boom lifts, scissor lifts, telehandlers and other heavy equipment to industrial, commercial and non-residential construction clients throughout the Midwest.

Transaction Summary

Brookwood advised One Source on a $39 million senior debt financing with Regions Business Capital. This is Brookwood's third straight successful transaction in the equipment rental space and another success in a series of industrial services transactions.

Engagement Process and Outcomes

Optimizing Capital Structure to Fuel Growth – Having expertly navigated the recent economic downturn, One Source was seeking to accelerate growth and free up cash flow required to amortize individual equipment term loans. Management needed a simplified, flexible loan facility with significant excess availability to fuel fleet expansion and drive revenue growth.

Overcoming Challenges – Brookwood had to overcome general lender concerns over the state of the rental equipment industry, which was recovering from the recent recession. By leveraging specific sector knowledge, Brookwood was able to highlight: (i) the attractive aspects of the aerial lift category; (ii) management's expert management of fleet levels and operating expenses during the recession; and (iii) One Source's strong position relative to its regional competition. 

Excellent Result – Brookwood contacted over 100 senior and mezzanine lenders, generating a set of attractive term sheets for Management's consideration. Ultimately, this allowed One Source to close an all senior transaction with an experienced rental lender that provided: (i) substantial excess availability; (ii) reduced cost of capital; and (iii) a simplified debt structure with reduced administrative burden.