McGrath RentCorp raises $75M in Series H debt at 6.53%
What's the deal? McGrath RentCorpDealroom has a profile for this one. Try Dealroom → issued $75 million of 6.53% Series H senior notes on November 2, 2026, selling the unsecured debt to PGIM, Inc.Dealroom has a profile for this one. Try Dealroom → and existing note holders. The notes mature November 2, 2031, with semi-annual interest payments starting May 3, 2027.
What's the endgame? The company, which rents modular buildings, portable storage, and electronic test equipment, is funding operations and fleet investment. In the third quarter of 2026, it raised planned gross rental-equipment capital spending to $270 million–$290 million, up from $200 million–$220 million.
Why now? The issuance is a quick re-raise on an existing PGIM note-purchase agreement, which McGrath has tapped for several $75 million tranches. It follows Series G at 5.30% in September 2025 and Series F at 6.25% in 2023.
Alongside the notes, the company amended its agreement to expand the revolving private shelf facility to $350 million and raised its cross-default and judgment thresholds from $10 million to $20 million.
The numbers: McGrath reported third-quarter 2026 revenue of $274.6 million, up 7% year over year, and net income of $48.8 million. Net borrowings stood at $618 million, with debt at 1.68 times adjusted EBITDA.
The signal: The 6.53% coupon sits above the 5.30% McGrath paid in September 2025, pointing to higher borrowing costs. For a company steadily drawing on the same lender to fund fleet growth, the routine issuance reads as ongoing financing rather than a sign of distress.
Read more: kalkinemedia.com
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