By Paul A. Harris
St. Louis, Aug. 11 - Ahern Rentals Inc. priced an upsized $200 million issue of eight-year second-priority senior secured notes (B3/B-) at par to yield 9¼%, according to an informed source.
The yield came at the tight end of the 9¼% to 9½% price talk.
CIBC World Markets has the books for the Rule 144A with registration rights offering. Banc of America Securities LLC is the co-manager.
Proceeds will be used to repay debt.
The issue was upsized from $175 million.
Ahern Rentals is a Las Vegas-based equipment rental business.
| Issuer: | Ahern Rentals Inc.
|
| Amount: | $200 million (increased from $175 million)
|
| Maturity: | Aug. 15, 2013
|
| Security description: | Second-priority senior secured notes
|
| Bookrunner: | CIBC World Markets
|
| Co-manager: | Banc of America Securities LLC
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 495 basis points
|
| 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: | Aug. 11
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 9¼%-9½%
|
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