Press Release of Refinancing of Debt


Exhibit 10.7


 

FOR
IMMEDIATE RELEASE 

Contact:
Jennifer Flachman 

AMERCO
Investor Relations 

(602)
263-6568 

Flachman@amerco.com







AMERCO
Receives Loan Commitments from Merrill Lynch and Morgan Stanley to Refinance its
Debt 




Reno, NV,
May 12, 2005, AMERCO (Nasdaq: UHAL) announced today that it has received loan
commitments from Merrill Lynch and Morgan Stanley to refinance its credit
facilities.




The
structure, pursuant to the loan commitments, will consist of three asset-backed
facilities.





	·  	
      $240
      million senior mortgage funded by Merrill Lynch









	·  	
      $465
      million hybrid real estate backed loan funded by Merrill Lynch
      








	·  	
      $260
      million senior mortgage funded by Morgan Stanley








“Our
refinancing strategy has been to reduce our borrowing costs, assure adequate
liquidity and provide financial flexibility for the organization,” stated Gary
Horton, treasurer of AMERCO. “The new structure will provide the company with
the capital necessary for continued investment and sustainable growth.
Furthermore,
The structure of the new loan facilities will provide increased flexibility for
the company to manage its operations and finances. This
positions the company to be able to devote all of its energies toward operating
the business. The
company also anticipates completing additional fundings in the near
future,”
concluded Horton.




AMERCO
will incur a one-time charge of approximately $34 million to pre-tax earnings in
the first quarter of fiscal 2006 associated with early payment of the existing
loans. The company anticipates annual interest savings of approximately $25
million based on current borrowing levels.







AMERCO is
the parent company of Republic Western Insurance Company, Oxford Life Insurance
Company, Amerco Real Estate Company and U-Haul, the nation’s leading
do-it-yourself moving company with a network of over 14,900 locations in all 50
United States and 10 Canadian Provinces. Celebrating its 60th year of serving
customers, the Company has the largest rental fleet in the world, with over
94,000 trucks, 75,000 trailers and 35,000 tow devices. U-Haul has also been a
leader in the storage industry since 1974, with over 340,000 rooms and more than
28.8 million square feet of storage space and over 1,000 facilities throughout
North America. 




For more
information about AMERCO, please visit www.amerco.com

 

Certain
of the statements made in this press release regarding our business constitute
forward-looking statements as contemplated under the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from those
anticipated as a result of various risks and uncertainties. Readers are
cautioned not to place undue reliance on these forward-looking statements that
speak only as of the date hereof. The Company undertakes no obligation to
publish revised forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events,
except as required by law. For a brief discussion of the risks and uncertainties
that may affect AMERCO’s business and future operating results, please refer to
Form 10-Q for the quarter ended December 31, 2004, which is on file with the
SEC.