Algeco Scotsman restructures dual-currency, multi-tranche bond offering, widens price talk

By Paul A. Harris

Portland, Ore., Sept. 28 - Algeco Scotsman restructured its dual-currency, multi-tranche high-yield bond offering and hiked the price talk on Friday, according to market sources.

The deal now includes two tranches of senior secured notes due 2019 (B1/B+), which are non-callable for three years.

A $1.04 billion tranche is talked at 8¼%, revised wider from earlier talk of 7¾% to 8%.

The €250 million senior secured notes are talked to price 50 basis points behind the dollar tranche, implying a yield of 8¾%, revised wider from previous talk of 8% to 8¼%.

Meanwhile a $750 million tranche of senior unsecured notes, which comes with four years of call protection, is talked to yield 10½%. That talk represents an upward revision from the previous 9¾% to 10% yield talk.

A proposed euro-denominated tranche of unsecured notes was withdrawn.

The deal has also been subject to extensive covenant changes, market sources say.

The order books were scheduled to close on Friday, following which the deal was expected to price. However no terms were available at press time.

Deutsche Bank Securities Inc., RBS Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to repay debt and to fund the acquisition of Ausco Modular.

Algeco Scotsman is a Baltimore-based company focused on modular space and secure storage solutions.

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