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Exhibit 99.1
INVESTOR RELATIONS CONTACTS
Christine Kubart-Cannella
Investor Relations Coordinator
(954) 760-6577
Pamela Beall
Vice President and Treasurer
(954) 760-6562
FOR IMMEDIATE RELEASE
NATIONSRENT RAISES $225 MILLION OF NEW CAPITAL
INCREASE TO SENIOR CREDIT FACILITIES OVERSUBSCRIBED
SECOND QUARTER RESULTS EXPECTED IN-LINE WITH ANALYST ESTIMATES
Fort Lauderdale, Florida - August 2, 2000 - NationsRent, Inc. (NYSE: NRI) today
announced that it has raised $225 million of new capital to fund its growth.
NationsRent said that it has entered into an agreement to sell $100 million of
series B perpetual convertible preferred stock to a group of investors
including: $20 million to Investcorp, $40 million to DB Capital Partners, an
affiliate of Deutsche Bank, and $40 million to J.P. Morgan Capital Corporation.
The shares are convertible into NationsRent common stock at $4.50 per share and
do not pay a dividend. The Company also announced that it has increased its
senior credit facilities by $125 million, $25 million more than the $100 million
it initially sought, to $925 million.
James L. Kirk, Chairman and Chief Executive Officer of NationsRent said, "This
new capital reduces our leverage and gives us the financial flexibility to
pursue our internal growth initiatives for the next several years. We are very
pleased to have Investcorp, Deutsche Bank and J.P. Morgan's investment which is
a clear endorsement of our leading national brand and focused operating
strategy."
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$100 MILLION PREFERRED STOCK
The $100 million of series B perpetual convertible preferred stock is
convertible into approximately 22.2 million shares of NationsRent common stock
at $4.50 per share. $52 million of the $100 million series B offering closed
today. The remaining $48 million will be funded upon shareholder approval, at a
special meeting to be held in the next 45 days. Upon completion of the
transaction, shares of the series B preferred stock will represent approximately
19 percent, on a fully diluted basis, of NationsRent common stock outstanding
upon conversion. NationsRent management and the Huizenga family will continue to
own approximately 26 percent, on a fully diluted basis, of NationsRent common
stock.
Christopher J. O'Brien, a member of Investcorp's Management Committee and
director of NationsRent said, "Investcorp is delighted to continue its support
of NationsRent and the Company's management team. The Company's impressive
growth through initiatives like the Lowe's program validates management's
investment in the NationsRent brand and represents an exciting opportunity for
the Company."
In connection with the private equity transaction, Robert G. Sharp, Managing
Director, DB Capital Partners and Simon C. Moore, Vice President, J.P. Morgan
Capital Corporation are expected to join the NationsRent Board of Directors.
Representing Investcorp on the NationsRent Board of Directors are Christopher J.
O'Brien, and Sean P. Madden who is expected to replace Charles J. Philippin.
With the additional directors, the Board will consist of 10 members.
Robert G. Sharp of DB Capital Partners said, "We are very excited to become
partners with such a solid management team, and provide growth capital that
accelerates NationsRent's leadership position."
Simon C. Moore of J.P. Morgan said, "J.P. Morgan is extremely pleased to become
a significant financial partner of one of North America's leading high growth
industrial services companies. We feel that the combination of strong market
fundamentals and industry leading business model, based upon superior service
and the Company's high quality management team, is compelling and that it will
generate significant value for customers and shareholders alike."
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SENIOR CREDIT FACILITIES OVERSUBSCRIBED
NationsRent said that it has increased its senior credit facilities by $125
million, $25 million more than initially sought, to $925 million. The credit
facilities consist of a $525 million revolver that matures in July 2004 and a
$400 million term loan that matures in July 2006.
ANTICIPATED SECOND QUARTER RESULTS
Separately, the Company said its second quarter results, which will be announced
on August 8, will be in line with the current consensus of analysts' estimates
of net income (on a fully diluted basis) of $0.07 per share for the second
quarter.
COMPANY PROFILE
Headquartered in Fort Lauderdale, Florida, NationsRent is one of the country's
leading construction equipment rental companies and operates nearly 200
locations in 27 states. NationsRent offers a broad range of high-quality
construction equipment at its locations that are conveniently located in highly
visible areas with a consistent retail look and feel offering superior customer
service at affordable prices.
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based on
current plans and expectations of the Company and involve risks and
uncertainties that could cause actual future activities and results to be
materially different from those set forth in these forward-looking statements.
Important factors that could cause actual results to differ include, among
others, risks associated with (i) the difficulty of integrating acquired
companies which could affect the Company's ability to derive synergies and
achieve growth, (ii) the availability of additional capital on terms acceptable
to the Company which could affect the Company's ability to execute its growth
and operating strategies, (iii) rising interest rates which could affect the
Company's ability to operate within the limitations imposed by financing
arrangements, (iv) a downturn in the economy in general, or construction
spending in particular, which could decrease demand for the Company's equipment
and drive down rental rates, (v) undiscovered liabilities of businesses
acquired, (vi) the ability to open new locations, including through a roll-out
with Lowe's, on favorable terms, (vii) competition and seasonality in the
equipment rental industry, and (viii) other risks and uncertainties described in
the Company's filings with the Securities and Exchange Commission. The Company
expressly disclaims any intent or obligation to update these forward-looking
statements.
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