By Paul A. Harris
St. Louis, Jan. 11 - Ahern Rentals Inc. priced an upsized $90 million add-on to its 9¼% second-lien senior secured notes due Aug. 15, 2013 (B3/B) at 103.75 on Thursday, according to an informed source.
The price results in an 8.253% yield to worst and an 8.497% yield to maturity.
CIBC World Markets led the Rule 144A with registration rights issue, which was upsized from $75 million. Banc of America Securities LLC was the co-manager.
Proceeds will be used to reduce bank debt.
Ahern is a Las Vegas-based equipment rental company that operates primarily in the southwestern United States.
The original $175 million issue priced at par on Aug. 11, 2005.
| Issuer: | Ahern Rentals Inc.
|
| Amount: | $90 million (increased from $75 million)
|
| Maturity: | Aug. 15, 2013
|
| Security description: | Add-on to the 9¼% second-lien senior secured notes
|
| Bookrunner: | CIBC World Markets
|
| Co-manager: | Banc of America Securities LLC
|
| Coupon: | 9¼%
|
| Price: | 103.75
|
| Yield to worst: | 8.253%
|
| Spread to worst: | 359 bps
|
| Yield to maturity: | 8.497%
|
| Spread to maturity: | 380 bps
|
| Call features: | Callable after Aug. 15, 2009 at 104.625, 102.313, par on and after Aug. 15, 2011
|
| Equity clawback: | Until Aug. 15, 2008 for 35% at 109.25
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 17 flat
|
| Ratings: | Moody's: B3
|
| Standard & Poor's B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 103.75 area
|
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