McGrath RentCorp filed a Form 8-K on November 4, 2026, disclosing that it entered into a First Amendment to its Second Amended and Restated Note Purchase and Private Shelf Agreement and issued $75 million in 6.53% Series H Senior Notes on November 2, 2026.

Key Highlights

  • New debt issuance: McGrath RentCorp issued and sold $75 million aggregate principal amount of 6.53% Series H Senior Notes on November 2, 2026.
  • Maturity date: The Series H Senior Notes mature on November 2, 2031, bearing interest at 6.53% per annum payable semi-annually beginning May 3, 2027.
  • Shelf facility increase: The amendment increases the aggregate revolving private shelf facility to $350 million.
  • Cross-default threshold raised: The cross-default threshold was increased from $10 million to $20 million, and the threshold for certain judgments was raised from $10 million to $20 million.
  • Minimum prepayment: The company may prepay all or any portion of the Notes at any time, provided the amount is at least $5,000,000, in increments of $100,000 in excess thereof, plus a make-whole amount.
  • Counterparty: The amendment was entered into with PGIM, Inc. and existing note holders under the Prior NPA dated June 8, 2023.

McGrath RentCorp Amends Note Purchase Agreement, Issues Series H Notes

According to the filing, McGrath RentCorp (NASDAQ:MGRC) entered into a First Amendment to its Second Amended and Restated Note Purchase and Private Shelf Agreement on November 2, 2026, with PGIM, Inc. and the holders of notes previously issued under the Prior NPA, as well as purchasers of the new Series H Notes. The amendment modifies the existing agreement to, among other things, provide for the issuance of the Series H Senior Notes, increase the shelf facility, and adjust certain event-of-default thresholds.

On the same date, the company issued $75 million aggregate principal amount of 6.53% Series H Senior Notes. The filing states that the Notes are unsecured obligations of the company, maturing on November 2, 2031. Interest is payable semi-annually, beginning May 3, 2027, and continuing on May 2 and November 2 of each year until maturity. Any prepayment requires payment of 100% of the principal prepaid plus a make-whole amount, with a minimum prepayment of $5,000,000.

Under the amended Note Purchase Agreement, the company may authorize the issuance of additional Shelf Notes in an aggregate principal amount equal to $350 million minus the outstanding principal amount of Notes already issued or accepted for purchase. The filing notes that the company has agreed to customary affirmative and negative covenants, including a maximum leverage ratio and a minimum fixed charge coverage ratio, for as long as the Notes remain outstanding. The filing was signed by Keith E. Pratt, Chief Financial Officer.

What Was Disclosed

McGrath RentCorp disclosed the November 2, 2026 issuance of $75 million in 6.53% Series H Senior Notes maturing in 2031, an amendment to its Note Purchase Agreement with PGIM, Inc., an expanded $350 million shelf facility, and increased event-of-default thresholds.