The agreement comes as the locally based equipment rental company completes a restructuring plan to reduce increased operating losses caused by a softening commercial real estate market.
Under terms of the agreement, the company's lenders permanently waived certain terms under events of default and allowed for an increase in pricing.
In exchange, Neff agreed to a reduction in the maximum amount allowed under the credit facility--from $220 million to $160 million by June 30 and to $120 million by Dec. 31. About $141 million was outstanding as of March 31.
The agreement follows announcement earlier this month the company accrued a net loss of $14.7 million, or 70 cents a share, on total revenue of $59.2 million for the three months ended March 31, compared with a net loss of $3.8 million, or 18 cents a share, on total revenue of $59.1 million for the same period in 2000.
As part of its restructuring effort, the company closed nine under-performing stores during the quarter, taking a one-time restructuring charge of $9.1 million.
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