Company: MGRC
Filing Date: 2025-09-08
Form Type: 8-K
Source: 0000950170-25-113536
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Company: MCGRATH RENTCORP
Filing Date: 2025-09-08
Form: 8-K
Item: Item 2.03
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Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On September 8, 2025, McGrath RentCorp (the “Company”) issued and sold to The Prudential Insurance Company of America and PruCo Life Insurance Company of New Jersey (collectively, the “Purchaser”) $75 million aggregate principal amount of its 5.30% Series G Senior Notes pursuant to the terms of the Second Amended and Restated Note Purchase and Private Shelf Agreement, dated June 8, 2023 (the “Note Purchase Agreement”), among the Company, certain of the Company’s subsidiaries, PGIM, Inc., and each other purchaser party thereto.

The Notes are an unsecured obligation of the Company. The Notes bear interest at a rate of 5.30% per annum and mature on September 8, 2032. Interest on the Notes is payable semi-annually beginning on March 8, 2026 and continuing thereafter on September 8 and March 8 of each year until maturity. The Company may at any time prepay all or any portion of the Notes; provided that such portion is at least $5,000,000 (and increments of $100,000 in excess thereof). In the event of a prepayment, the Company will pay an amount equal to 100% of the principal amount so prepaid, plus a make-whole amount.

Pursuant to the terms of the Note Purchase Agreement, the Company has agreed to customary affirmative and negative covenants for as long as the Notes are outstanding, including, subject to certain exceptions and qualifications, among other things, (i) a maximum leverage ratio and (ii) a minimum fixed charge coverage ratio.

The Notes are also subject to customary events of default, including without limitation, (i) failure to make payments on principal or premium, if any, upon maturity; (ii) failure to pay interest within five business days after the same becomes due and payable; (iii) the Company or any of the Guarantors (as defined below) fails to comply with its various covenants and agreements in the Note Purchase Agreement; (iv) the Company or any of the Guarantors makes false representations and warranties in the documents relating to the Note Purchase Agreement; (v) the Company or any of the Company’s Material Subsidiaries (as defined in the Note Purchase Agreement) fails to pay when due debt obligations in excess of