Ahern Rentals talks $500 million eight-year notes at 7 3/8% area yield

By Paul A. Harris

Portland, Ore., April 29 – Ahern Rentals, Inc. talked its $500 million offering of eight-year senior secured second-lien notes (B3/B) to yield in the 7 3/8% area, according to a market source.

Official talk comes tight to earlier guidance, which had the deal shaping up in the mid-7% area.

Books close at 10 a.m. ET on Thursday, and the deal is set to price Thursday afternoon.

BofA Merrill Lynch and J.P. Morgan Securities LLC are managing the sale.

MUFG, BBVA, RBS Securities Inc., SunTrust Robinson Humphrey Inc. and Regions are the co-managers.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 40% equity clawback.

The Eugene, Ore.-based heavy construction rental equipment company plans to use the proceeds to redeem its 9% notes due 2018, to pay down a portion of its outstanding ABL facility and to repay a shareholder contribution.

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