By Paul A. Harris
Portland, Ore., March 29 – Paris-based equipment rental company Loxam SAS launched and priced an upsized €850 million amount of high-yield notes in a restructured three-part deal on Wednesday, according to a market source.
The deal, upsized from €810 million, was restructured with the addition of a second tranche of secured notes.
It included €300 million of five-year senior secured notes, introduced in the restructuring, which priced at par to yield 3½%.
In addition, €300 million of seven-year notes priced at par to yield 4¼%.
As originally structured, the deal had a single seven-year secure tranche sized at €560 million, with early guidance of 4¼% to 4¾%.
Away from the secured portions of the deal, a €250 million tranche of eight-year senior unsecured notes priced at par to yield 6%. Initial guidance on the unsecured notes was 6¼% to 6¾%.
Joint bookrunner Deutsche Bank will bill and deliver. Credit Agricole CIB, Natixis and SG CIB were also joint bookrunners.
Proceeds will be used to repay the bridge facility related to the acquisition of England-based equipment rental company Lavendon Group and to pay directly for the remaining shares of Lavendon, plus costs related to the acquisition.
| Issuer: | Loxam SAS
|
| Amount: | €850 million, increased from €810 million
|
| Bookrunners: | Deutsche Bank (bill and deliver), Credit Agricole, Natixis, SG
|
| Trade date: | March 29
|
| Settlement date: | April 4
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Five-year secured notes
|
| Amount: | €300 million
|
| Maturity: | April 15, 2022
|
| Coupon: | 3½%
|
| Price: | Par
|
| Yield: | 3½%
|
| Spread: | 386 bps
|
| Call protection: | Two years
|
|
|
| Seven-year secured notes
|
| Amount: | €300 million
|
| Maturity: | April 15, 2024
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 434 bps
|
| Call protection: | Three years
|
|
|
| Eight-year unsecured notes
|
| Amount: | €250 million
|
| Maturity: | April 15, 2025
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 597 bps
|
| Call protection: | Three years
|
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