Emeco talks downsized $335 million five-year secured notes at discount to yield 10¼%-10½%

By Paul A. Harris

Portland, Ore., March 6 - Australia's Emeco Pty. Ltd. talked a downsized $335 million offering of five-year senior secured notes (Ba3/BB-) to price at a discount not to exceed 2.5 points and to yield 10¼% to 10½%, an informed source said on Thursday.

The deal was downsized from $360 million.

In addition to the downsizing, call protection was increased to three years from two years. The equity clawback was extended to cover the length of the non-call period, increased from two years. The equity clawback premium was decreased to 35% from 40%.

Books close at 11 a.m. ET on Friday, and the deal is set to price thereafter.

Credit Suisse Securities (USA) LLC is the bookrunner for the Rule 144A and Regulation S for life offering.

The Osborne Park, Australia-based mining equipment rental company plans to use the proceeds to repay debt and for general corporate purposes.

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